Millennials are the most "in the dark" generation when it comes to pensions, research from InvestEngine has found, with just over half (51 per cent) admitting they rarely think about their pension.

This compared to 38 per cent for Gen X savers, and 43 per cent for Gen Zs.

In addition to this, the research found that just over a third (35 per cent) of Millennials think that their pension will be enough to get them through retirement.

This is perhaps unsurprising, as 37 per cent also admitted that they don't understand their pension, while 45 per cent were unaware that they are paying fees on their workplace pensions, again higher than Gen X (34 per cent) and Gen Z (41 per cent).

Overall, more than half (57 per cent) of Millennials said that they don’t know what fees they are paying on their workplace pension, while nearly a third (30 per cent) think a higher fee is normally an indicator that the pension fund and provider are of higher quality, which was significantly higher than Gen X (13 per cent).

The survey also found that whilst 29 per cent of Millennials were aware of the 0.75 per cent cap on workplace pension fees, they also thought that this meant that fees wouldn't have a major impact on their retirement fund.

However, InvestEngine emphasised that even small differences in fees could have a significant impact, as its analysis suggested that a basic rate taxpayer saving £300 a month into a pension, paying the maximum 0.75 per cent annual fee over 40 years would see £123,668 wiped from their retirement fund due to fees.

InvestEngine head of investments, Andrew Prosser, said: “We know that on average most people aren’t saving enough for their retirement, but our research shows that it is Millennials that are the most in the dark when it comes to their pension fund – more so than older Gen X and younger Gen Z in many respects.

“As the generation of auto-enrolment, Millennials may simply have had fewer reasons to think about and engage with their pension, but this has led to some alarming findings.

"Most concerning is the lack of understanding around the long-term impact that seemingly low pension fees can have on their retirement savings. Even small percentages add up to life-changing sums over time.

“People should be able to invest for a comfortable retirement without high costs holding them back, which is why we’ve removed our platform fees for SIPPs, ensuring every pound invested works harder for their future.”

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