Floyd Miller Investments

Portafina survey finds 80% of young Brits feel they were not taught enough about pensions

80% of 18-24 year olds have said an enhanced education on financial skills and pensions at school would have improved their financial position in the present day, according to a survey conducted by pension finance specialists Portafina.

According to the survey, taken from 2,002 participants, over half also felt that the lack of education had prevented them from taking their pension seriously.

Jamie Smith-Thompson, managing director at Portafina, said: “Although I do appreciate some of the barriers teachers and schools experience with providing lessons on this subject matter, it is something the government needs to address.”

When asked which financial skills survey participants wished they had been taught at school, 84% said that they would have liked to know more about interest rates, mortgages, banking and national insurance.

56% of these participant also said they wished they had been taught more about money management, while 32% said they would have benefitted from being taught what a pension was and how it would be useful to them in the future.

Mr Smith-Thompson agreed that a lack of understanding about pensions pointed to a lack of education on the subject from a very young age.

As well as younger people, Portafina also surveyed 1,500 parents and found that 91% want their children to learn more about money management, 65% would like their children to learn how to pay bills and manage debt, 62% want to see their children learn more about banking and investment and 41% would like their children to know more about paying into pensions.

Only 3% of parents surveyed felt that their children did not need to learn these financial skills at school.

In a study conducted by Portafina, it was revealed that 83% of British people do not understand what a pension is and only a third of people know how much money is going into their pension savings.

On a similar note, it has been found that many British people are not properly educated on state pensions or when they are able to be accessed.

Sir Steve Webb, a former pensions minister and current director of Royal London, said that more should be done to raise awareness of the state pension option.

It has also been revealed that the top five reasons given for people not taking their pensions seriously while they are young are that it is too far away to prioritise, they lacked education on it at school, it is too confusing to work out, they do not know who to ask, or that they found it too frightening to think about.

Mr Smith-Thompson said that saving for the future can only be a good thing, so the sooner children and young adults get into the habit of learning about financial skills and what pensions are, the better.

These statistics are taken from a February 2019 survey of 2,002 employed UK adults.

The information in this article was received from https://www.marketwatch.com/press-release/portafina-educates-brits-on-pensions-after-83-reveal-they-dont-know-what-a-pension-is-2019-08-10