Millennials would allocate 42% of their investment portfolio to “social finance”, according to research into how well the generation born after 1980 is served by pensions and investments providers.
Despite the demand, social finance is “an option that is virtually inaccessible through today’s mainstream retirement savings products”, which also fail to make socially responsible investment products more central to their offering, the research by the Judge Business School at University of Cambridge, and sponsored by BNY Mellon, finds.
The broader research finds that financial services providers such as life insurers, banks and asset managers are “losing the battle to engage with this generation of potential new customers” and that millennials are not equipped to adequately plan for retirement.
“Senior executives within these organisations are guilty of the same short-sightedness towards the long-term health of the businesses they run as millennials are towards their retirement saving.”
The researchers conducted a 30-question survey between 1,200 millennials in the USA, Japan, Australia, Brazil, the Netherlands and the UK.
The report is called Generation Lost: Engaging millennials with retirement saving.
©2015 funds europe
