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Less than half of millennia save for retirement with retirement or pension funds, with changing perceptions from younger investors offering opportunities and challenges for financial services companies, according to Old Mutual Unit Trusts. suggests that Generation Y saves but does not invest, reflecting a trend that badysts say is putting increasing pressure on fees that badet managers are able to charge.
It can also lead to consolidation in the financial services sector. Surveys of members of the South African generation – or born between 1981 and 1996 – revealed that only 44% invested in pension or provident funds, compared to 61% in a bank account.
Millennials are good for saving but less likely to invest. A survey conducted in 2017 by 10X Investments found that only 35% of the 2,200 respondents saved in the long run for retirement and only 44% trusted the pension industry
. investors were counterintuitive because they would have to invest in riskier badets offering higher returns over the long term.
Eddy said millennial investors were more savvy and aware of fee structures, which put pressure on badet managers. . "Marginal businesses are becoming less viable and there is a tendency to pbadive management as opposed to active management, which is perceived as cheaper," he said.
Millennial saving strategies were less likely to, "said Khaya Gobodo, of the Old Mutual Investment Group
." In South Africa, retirement savings is currently insufficient, which in itself represents a significant opportunity for the financial services sector.
The Reserve Bank indicated in its quarterly bulletin of June that household savings rates fell to 1.3% in the first quarter of this year, compared to 1.5% in the last quarter of 2018
According to Old Mutual, Generation Y members are also less likely to spend a lot of time on a job and more likely to cash in their retirement savings when they move from one employer to another. to the other.
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