Trustnet Magazine Issue 21 September 2016 | Page 15

/ MILLENNIALS /

THE LONG GRASS

Martin Bamford, chartered financial
planner for Surrey-based Informed
Choice, says competing financial
priorities mean that for Millennials,
saving for retirement is often kicked
into the long grass.
“Many in this age group feel
financially stretched by daily
living costs, repaying student
debt and trying to get on to the
property ladder. This tends to push
pension contributions well down
the list and can result in a poorer
retirement.”

TOO GOOD TO MISS

The first hurdle in saving for
retirement, he says, is not wanting
to save, and that usually results from
underestimating the consequences
of failing to do so.
“Millennials who find
themselves financially stretched
need to start by making a
monthly budget and living within
their means,” he said. “Putting
something aside for the future is
better than saving nothing at all. If
your employer is offering to match
contributions, then this is an
opportunity too good to miss.”
“I would encourage anyone in
their 20s or 30s to start saving
what they can for retirement and
gradually increasing their savings

Their smartphones, chai
lattes and
Instagram
holiday snaps
belie a hazardous
truth: many are
broke
rate over time. The best time to
boost your savings is when you
get a pay rise or bonus, so always
allocate a good portion of that to
the future. Saving for retirement is
about much more than pensions.”
He also adds that the
introduction of the Lifetime ISA
next April is likely to be a better
choice for Millennials who want
a degree of flexibility in terms of
earlier access to any money they
have saved – for buying their first
property, for example.

TIME ON YOUR SIDE

Adrian Lowcock, investment
director at Architas, says the one
asset Millennials have that other
generations don’t is time, but also

PERFORMANCE OF INDEX OVER 10YRS WITH AND
WITHOUT REINVESTING DIVIDENDS
80%

FTSE All Share (with dividends reinvested) (75.34%)

60%

FTSE All Share (without dividends reinvested) (22.93%)

40%
20%
0%
-20%

Source: FE Analytics

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-40%

notes the lack of spare money to save
towards a