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Briefing Note 85 - Engagement of young adults with pension saving
Engagement with pensions by young adults has advantages, however it has been traditionally low in this age group. There are multiple barriers preventing young people from engaging with pension savings. In particular, stereotypes about later life might encourage or deter engagement with retirement.
This Briefing Note explores barriers to engagement for young people and the ways in which negative perceptions of ageing can impede engagement with pension saving. It also outlines how tackling these psychological barriers can be used as part of effective financial advice.
It finds that young people face age-specific barriers to engaging in planning for older age. Alongside many recognised and accepted barriers, one area which has not yet been thoroughly explored by the policy community is the way in which negative perceptions of ageing impede engagement among young people. Engagement strategies may need to recognise the age differences and use different techniques to target young adults. It might be beneficial for advice and guidance to use a more multi-disciplinary approach and use elements of psychology alongside other financial support techniques.
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