The Power of Emotions:

Responsible Investment as a Motivator for Generation DC

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'Generation DC' are the 22-38-year-olds, many of whom are newly enrolled in workplace pensions. Without the property wealth and defined benefit pensions enjoyed by their parents, this is the first generation to rely heavily on DC pensions to fund their retirement needs.

This is a generation of demanding and often ethical consumers. Their attitudes and feelings are of key significance to the pensions industry. If we are to understand Generation DC as people, we need to understand their emotional motivators.

In this research, we use innovative emotional analytics to explore how this generation feel about their workplace pensions, the emotions underlying the topic, and then focus on responsible investing ('RI').

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Our findings show a clear misalignment between how young people feel about RI and what their pension delivers in this area.

They also suggest that RI can be a catalyst for Generation DC to put more into their pension.

78%

of Generation DC survey respondents indicate that their current pension provision either doesn't align with their values or they don't know if it does.

45%

of respondents would be motivated to increase their own contributions if their pension incorporated RI.

£1.2bn

An additional £1.2bn of employee contributions could be invested annually by this generation if RI was incorporated into their pension.

20%

This would represent close to a 20 percent increase in the amount currently contributed by employees.

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Find Out More

Contact Us

David Whitehair
Director, DC Strategy
020 7073 8746
david.whitehair@franklintempleton.co.uk

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