Millennials are failing to save for retirement

Luke Graham, News Assistant
Millennials don't save enough money
Millennials don't save enough money

Millennials are failing to save money and put something aside because of the rising cost of living, according to experts.

Twenty nine percent of young people aged 18-34 are not saving any money month to month. Among 25-34 year olds, only 28 percent have started saving into a personal pension, according to an online survey commissioned by investment platform Rplan.

The survey of 617 young people across the U.K. also found that, among the 72 percent of millennials who had moved out of their parents' home, young people had on average just £170.78 ($245.76) of spare income after paying for their living expenses.

"The temptation for young people to spend is strong of course, but our research shows that the millennial generation is simply not saving enough," said Nick Curry, director at Rplan, in a press release.

"The danger is that we will have a whole generation coming through that hasn't saved enough to get on the housing ladder or with enough retirement savings."

This is the biggest financial worry for millennials

Helen Saxon, chief product analyst at consumer website, said the findings were concerning, but not surprising.

"Almost every day we read about rising rent costs, and ever spiralling house prices – so, even if 20-somethings do have cash left at the end of the month to save, they may not see the point, as the dream of buying a house gets ever further out of their reach," she told CNBC via email.

"However, saving for later life is important, whether it's for a house or a pension, and it's especially important in your 20s, when any cash you put into a savings account or pension has time to grow."

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