Milliennials in a fried chicken outlet are asked to forego chips today for a reward in the future in a new member nudge video from Now: Pensions.
The video, designed for employees considering opting out of auto-enrolment, ask viewers to forego some chips today for a reward later. It goes on to ask whether they would forego an average of £17 take-home pay a week for £300,000 in retirement.
Employees wanting to opt receive information on how to opt out of auto-enrolment after they have watched the two-minute video.
The video launch comes as research from the master trust provider has found 22 per cent of 18 to 30 year olds do not believe there will be a state pension when they retire.
When asked about the new flat-rate, single tier state pension, 58 per cent admitted they had absolutely no idea how much it was and only 12 per cent knew the exact amount.
When told that the new flat rate state pension would pay £155.65 a week, 41 per cent did not think this will be enough to retire on. Only 17 per cent thought this would be enough to be sure of a comfortable retirement. Despite this, 34 per cent say they aren’t currently paying into a workplace pension. Of those that are paying in, only 8 per cent know both the percentage they are paying in and the amount in monetary terms.
When asked about the best ways to save for retirement, 26 per cent of 18-30 year olds say they “don’t know”, with 10 per cent thinking that putting money in a bank account is the best way. The Lifetime Isa, due to launch next year, was one of the least popular options with only 5 per cent thinking it’s the best way to save for retirement.
Now: Pensions CEO Morten Nilsson says: “Younger generations are pessimistic about the future prospects for the state pension but despite this many are taking a relaxed approach to their personal pension saving.
“Auto enrolment will bring a much larger proportion of the younger generation into workplace pensions allowing many more to take control of their retirement saving helping to protect themselves against an uncertain future.”