Under-35s struggling to save money due to low wages

Millennials are just as keen on saving for the future as their predecessors, despite a reputation as the Yolo - "you only live once" - generation, according to a survey by the Pensions and Lifetime Savings Association (PLSA).

But young people are frustrated in their desire to put away money for the future by barriers such as the high cost of living and low wages, it adds.

The same number of young people aged 18-35 told the pensions industry body they got most satisfaction from saving as did from spending - and only a minority thought their extravagant lifestyle was stopping them accumulating a nest egg.

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The BBC sounds a note of caution, saying the PLSA survey was of a "relatively small" group, but the broadcaster agrees millennials face difficulty in putting money away – primarily, low earnings.

Of the people surveyed, the majority said their only debts were student loans. About a third were saving "for a rainy day", while the same proportion were focussing on paying for one-off expenses, such as cars and holidays.

The fact remains that the current generation is more likely to save for the medium-term than the long-term, however, with few giving thought to pensions or retirement.

Joanne Segars, of PLSA, said: "The 18-35 year olds are no different to many people - they want to save for a secure future, but short-term financial pressures get in the way.

"It is not surprising that without help, this group prioritises short-term over long-term saving, given the current rock-bottom interest rates and low wage increases."

Alistair McQueen, of provider Aviva, told the BBC: "The gap between wages and property prices continues to widen. Faced with these property pressures, it is understandable that the need to save for retirement can feel like a luxury few can afford.

"It is to the millennials' credit that more than half see saving for their retirement as a financial priority. It is also to their credit that more prioritise long-term saving than short-term spending."

One 23-year-old graduate, Alex Penney, told the broadcaster he did want to start a pension. He said: "I am hoping to start saving from my first pay cheque. The only thing stopping me is the deposit, rent and fees when I move."

"Most people [my age] are scared of the stock market, but I'm interested in it all."