Why Millennials tune out to the sound of pensions

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“You need to study hard at school, get yourself a good job, save for a pension, settle down, get married and start a family.”

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We’ve all heard this piece of advice before, or at least various iterations of it. It’s the classic transfer of wisdom from a Grandparent to a mixed-up teenager in the early throws of adult life.

Reading this old adage today demonstrates how much times have changed, especially during the last 15 years where we’ve experienced a significant spike in social development. 

Wise words?

Let’s examine the saying in more detail and see how relevant it is today. I’m gearing this towards the Millennials, widely accepted as those aged somewhere between 20 and 40:

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“You need to study hard at school”

There is a major misalignment between the skills being taught in education versus the skills required in the fast-moving workplace. The system, understandably, cannot keep pace – it couldn’t keep up when I was in education, pre-digital revolution, some 20 years ago, let alone now.

However, the abundance of learning resources available is proof of the demand for learning. There are thousands of online platforms, courses, social media groups and masterminds for just about anything, often delivered by people who can demonstrate success in the relevant area. Education is still relevant but the delivery has changed.

Modern learning is entertaining and inclusive, not laboured or dictatorial. In fact, Millennials sense and reject ‘box ticking’ exercises, resulting in qualifications being challenged by inspiration. 

“You need to get a good job”

It’s easy to argue that this a timeless requirement. However, the saying always suggested that getting a ‘good job’ was the act building up decades of service for the same large, robust organisation - quietly following a linear career path. 

Even from the bottom of the corporate food chain, Millennials have unleashed a fresh energy to the workplace - they’ve pioneered a shift towards values and wellbeing, whilst continuing to push the standards of thinking and conduct ever higher. 

The idea of working for a single employer for a long period of time is wholly outdated, it’s common for Millennials to leave a position after a couple of years. They remain restless whilst once formidable employers try to figure out where to place, how to tame and how to keep Millennial talent within the ranks.

In fact, there are a multitude of reasons why Millennials are expected to experience several major career changes in their working life: They’ll be working longer than the previous generations, experience more change, and they will have greater opportunities to diversify their career options. It has never been easier to start a business or join a vivacious Fintech; go freelance or work remotely. Millennials tend to be driven by ethics and will switch depending on their beliefs.

“You need to save for a pension”

Hold that thought; we’ll come back to this one.

“You need to settle down”

This statement suggests laying down some roots and buying a house. The escalation in housing prices versus the rise, or decline, in real wages are well reported. In the 1980s you could do some real damage with ￡100k on the property market, but those same houses are likely to be worth four or fives times that amount today. As many as 40% of young adults in the UK are living with their parents (ONS).

The so-called ‘Generation rent’ have a tough time of it when it comes to getting on the property ladder.There are solutions available to make property #1 more realistic, but they pale into significance when compared to the magnitude and abundance of obstacles. 

Trends, if read a certain way, suggest that Millennials are more transient and curious of other people’s way of living, most notably evident through the rise of Airbnb. Or, read another way, is this simply a more realistic way for some Millennials to flirt with the idea of home ownership while their pay packet is dominated by rent or saving for a deposit.

“You need to get married”

The decline in opposite sex marriage and the perceived relevance of opposite sex marriage is well document. We also know that around a third of marriages end in divorce. 

Marriage, no matter your personal viewpoint, has lost its stature. The average (mean) age for men marrying is 37.5 years, while for women it’s 35.1 years*. The previous generations had fewer opportunities to find their soul mates, whereas the multitude of apps available are just one avenue of experimentation Millennials can try. 

There’s also the shift towards equality and the abolition of stereotypes. As roles of men and women become more equal, there isn’t any survival-level need to pair up.

“You need to start a family”

The decision to have children is also being deferred to later in life. Gone are the days of 2.4 children.

The average number of children for a British family is now around 1.7. The average age of a first time Mum is nearly 29 years old**, suggesting that careers, finances and life goals make starting a family a longer-term decision. 

Parenting is now more connected than ever, frequently using Whatsapp groups to maintain relationships, online forums to seek ideas and solutions and social media to share family stories.

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Looking back on this wholesome advice from ‘back in the day’ highlights how much society is changing and how we continue to challenge traditional ideals. While the spirit of this message arguably is still alive, it does not carry the same gravity or resonance today, especially when directed towards the Millennials.

This is an empowered audience who are less responsive to what they ‘need’ to do and more enraptured by what they ‘want’ to achieve.

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> There are two themes at play:

1.) Experiences – The driver

Millennials favour experiences over products and processes. They are less interested in jumping to the end result; they want to play the game, actively contributing to the solution, and going through the journey’s twists and spins. Using education as an example, Millennials are likely to be less engaged by the linear start and end point of a qualification, and more intrigued by the textured, informal approach of content consumption, social networking, events, career experimentation, and life experience accrued over a long period of time.

2.) Technology – The facilitator

The eldest Millennials began adulthood just as the digital evolution was emerging, while the younger Millennials are pure digital natives. While digital fluency differs from person to person, a mobile device with social feeds, apps, sites, ebooks, podcasts, streaming services are an essential part of everyday life to the point that it has created a sense of digital expectations. Millennials expect a digital-based solution to their questions.

If you fuse  1.) Experiences with  2.) Technology, and do it with beauty, then you begin to align yourself with Millennial behaviours. You’ll step away from preaching ‘need’ and move into creating ‘want’.

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> Creating want over need

Millennials are said to be the first generation to be less well off than their parents. But they are also prime consumers of modern, successful brands such as Uber, Apple, Spotify, Netflix and Deliveroo. These brands know this and they play into the hands of  Millennials by combining beautiful experiences with technology. 

It feels counterintuitive: on the one hand, Millennials are financially challenged, but at the same time they Uber into town, watch Netflix and are prepared to spend ￡1,000+ on a smart phone that is only incrementally better than its predecessor. That’s because these brands present things that Millennials ‘want’, not that they ‘need’. And that’s the difference. 

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> What this means for pensions

We now know that Millennials are drawn to things they want’ to and will not react to being told what’s best for them. It’s a simplistic observation, but the most prolific marketers grasp this and use this insight to drive their message. 

The task for pensions is to make itself desirable. We need to flip the mindset from telling people they ‘need’ a good pension to making them ‘want’ a good pension. 

It is vital to create smooth user journeys, swift navigation and stunning yet austere digital interfaces that balance minimal design with maximum attraction. Users want to sign in, browse for a few moments, and swipe back to their social feed. 

Embedding this approach into Millennial specific member communications – the largest workforce on earth I might add – will play into the hands of the consumer and make pensions feel more relevant. Any brand that’s a chore to use won’t cut it with today’s consumers.

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> Parallel case study

The solution is nearer than you think. I’m a Millennial. I have an ISA with Funding Circle (this is not a product endorsement). They send me one simple email a month; it usually contains some useful content and a call to action. I log in, review the simplistic interface, then log out again. It takes a few minutes of my time and because they make it so easy for me, I consider myself ‘engaged’ with the product – I WANT to spend time with them. If I want to delve a little deeper I will do so, but it will be on my terms. I see this as a good experience, but by no means a high bar that could not be replicated.

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> Summary

Flipping back to pensions, how easy do we make it for members to engage?  We tell them that they need to engage, but do we create member experiences that would rouse them into actually ‘wanting’ to? 

I invite you to join our LinkedIn Group ‘2020 Comms’ where we discuss all things to do with comms modernisation:

https://www.dhirubhai.net/groups/13664037/

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About the author

I am fascinated by the sticking points in corporate life that prevent employees – particularly those between their 20s–40s – from leading a fulfilling worklife. Later in 2019 we are launching a pioneering publication and engagement materials. I am interested to hear from those in HR, learning and development, reward and benefits, communications or leadership positions who would like to be involved in shaping our concept.

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*https://www.bbc.co.uk/bbcthree/article/7b96f5d1-47af-44b5-a530-b70e5533324a

**https://www.cosmopolitan.com/uk/reports/a12784974/average-age-women-have-first-baby-become-mum/

Photo by Zoltan Tasi on Unsplash