Despite 40 per cent of young adults setting aside more than a fifth of their income every month, eight in 10 still fear whether they will have enough money for their retirement, research from the Dutch Federation of Pension Funds (Pensioenfederatie) has revealed.

The research showed despite the majority (92 per cent) of young adults believing it is important to set aside money for later, three-quarters of this group does not save as a supplement to their pension.

It also found that young adults don't set aside extra money for their pensions because their employer is already contributing, their salary isn't high enough to allow for additional savings, or they feel they're too young to worry about retirement.

In terms of encouragement to save for retirement, 5 per cent are encouraged by parents or guardians, while friends and the influence of social media hardly play a role.

The research also showed that the amount young adults deposit into their savings accounts is greater than what they spend on clothing, subscriptions, or transportation, suggesting they handle their money with care.

In terms of what young people save for, the research showed it was for an emergency fund, 'major expenses' and travel/leisure.

The research also indicated that fixed costs are increasing, which is also the case for young adults.

In addition to costs of home, insurance and gas/water/electricity, young adults spend most of their money on groceries.

In terms of gender, men put more money aside than women, as 71 per cent of men save more than a tenth of their income, compared to 63 per cent of women who do the same.

The research also highlighted that some respondents believe they earn too little to save, which affects more women (10 per cent) than men (5 per cent).

Pensioenfederatie chairman, Ger Jaarsma, said: “We see a new generation that takes finances seriously, makes conscious choices but still experiences a certain unrest about the future. Opening the conversation about this helps.

“We’re having conversations with young adults about what they can already do today to ease their concerns about the future.”

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