GLOBAL - Most pension funds are failing to actively engage with ‘Generation Y', the generation now in their twenties, found the results of September's Global Pensions 100 Panel.
Only 23% of pension fund respondents to the survey claimed to be engaged with Generation Y, while a clear majority, 61%, stated they were not actively engaged with the demographic group.
“We are looking for ways to communicate more effectively to generation Y,” admitted one respondent.
Another respondent pointed out: “Generation Y has attention, but from a different angle. They can hardly afford a home, but have to pay pension contributions. That is a potential conflict.”
The findings of the Global Pensions survey show pension funds to be broadly in line with the fund management industry in not paying enough attention to today’s twenty-somethings.
An international survey, ‘Beyond the Baby Boomers: The Rise of Generation Y’, carried out by KPMG recently found the fund management industry to be “unaware or simply unprepared” for the demographic change that will affect their customer base, continuing to focus instead on the so-called ‘baby boomer’ generation.
In fact, the survey found only 50% of respondents in the fund management business were targeting, or had plans to target, Generation Y.
Bernard Salt, partner with KPMG Australia and author of the report, commented: “The fund management industry has been catapulted forward on a rising demographic tide.
“That tide is now receding. Over the next five years the number of people pushing into ‘wealth accumulation’ will turn negative. The industry must take stock, examine its position, and recalibrate its trajectory to align with the rise of Generation Y as wealth creators and wealth inheritors if it wants to continue to grow and prosper.”
This week's top stories included Cardano announcing plans to acquire Now Pensions from a Dutch pension fund later this year.
Royal Bank of Scotland (RBS) faces a £102m impact on liabilities as a result of equalising guaranteed minimum pensions (GMPs), according to its annual results.
Malcolm Mclean says getting the channels of communication right and engaging more openly is a good starting point