Less than half of people under 30 are saving for a pension and fewer are even thinking about making provision for their future, says the ABI.
The research concludes there are no “subsequent triggers” to motivate young people to begin saving.
Consultancy Andrew Irving Associates carried out the survey for the ABI and the results show that long-term savings is well down the list of priorities of young people. They are more concerned about making ends meet, having a good time and reducing debt before starting to save.
Those who are saving are more inclined to be putting together a deposit to get on the housing ladder, viewing property as more suitable than pensions.
Four consumer segments were identified and none was more inclined to save through a pension.
High achievers may be in good jobs jobs but are more focused on property while careful managers are most open to pensions but want more information. Hard-pressed strugglers either rent or live at home and struggle to get by day to day, while overgrown children live at home and are largely dependent on parents for financial support.
ABI head of pensions and savings Joanne Segars says: “This does not mean that the Government, savings industry and employers must simply give them up as a lost cause – it is entirely the opposite.”