Millennial Women's Attitudes Towards the State Pension in the UK
Over recent decades, international pension systems have undergone reforms in response to an ageing population. These changes have shifted the focus from state-provided pensions to encouraging individual responsibility for saving. However, little research has explored how millennial women in the UK view these changes, even though attitudes directly influence savings behaviour.
Pension Under-Saving: A Gender and Generational Issue
Under-saving for retirement is most common among women, due to fragmented employment histories, and millennials, born between the early 1980s and late 1990s. Women’s careers often involve breaks for caregiving or part-time work, which leads to smaller pensions. Millennials, facing economic challenges, tend to prioritise short-term financial goals over long-term saving.
Key Findings on Millennial Women and Pensions
Research involving 45 interviews and a focus group reveals that millennial women lack knowledge and certainty about state pensions, which impacts their savings behaviour. For many, pensions are not a financial priority, with immediate concerns like housing and student debt taking precedence. The idea of retirement seems distant, making it hard for these women to engage with pension saving.
The Need for Policy Shifts
The current individualised pension system places responsibility on individuals to save, which disproportionately affects women. Addressing these challenges requires collective policy solutions that support non-linear career paths and provide better pension education.
Encouraging Long-Term Saving
To improve engagement, millennial women need better education and support for long-term financial planning. Government policies and workplace pension schemes must adapt to the realities of women's working lives to ensure they have financial security in retirement. Without these changes, many women risk facing instability in later life.
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