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Identifying this comprehension gap, urging Millennials understand the gravity of today’s decisions on tomorrow's financial future, pensions experts, Profile Pensions, have researched average millennials spend and compared it to the government provided State Pension, revealing a concerning £1000 per month difference between the two monthly incomes.

Spending an average of £1770 a month, including living expenses, social activities and simple pleasures, the reasonable spend amount is still 142% more than what would receive if they only have the £731 State Pension to rely on.

With rent alone coming to 118% of the State Pension, even if millennials are to cut out all luxuries from their spend, such as Netflix, take away and nights out, the total spend of £1318 further raises the alarm bells that the State Pension is unsustainable.

Though, with the help of the Workplace Pensions Scheme and early intervention, little sacrifices can mean a world of difference for your future self.

The pension provider offers tips to both help slightly cut costs and take advantage of the scheme to maximise your benefit.

Take advantage of your company’s workplace pension scheme

Due to auto enrolment, you’ll be saving a minimum of 8% of your salary per month towards retirement. Comprised of a 5% deduction from your pay and a 3% employer contribution, the 3% employer contribution is money you will not otherwise receive that is added to your pension pot for your future self. The 5% you contribute provides added tax relief.

Be proactive and make sure your scheme is best for you

As with many things, the default option may not be what’s best for you. Looking at your pension plan now could make a considerable impact . Most workplace pensions

Cook for yourself, rather than take away

It’s a 101 saving tip but choosing to cook for yourself can be one of the easiest ways to cut costs. The average amount spent on groceries and takeaways together equals over £300 a month, by trading Deliveroo for Tesco, you could be putting aside as much as £110 a month towards your pension.

Enjoy nights out but be savvy about them

The average monthly amount spent on nights out is equal to 32% of the full state pension. While enjoying yourself while your young is important and this is an expense you’re likely to pay less in retirement, spending less while you’re out, considering cheaper options or just staying in a little more can cut costs in half and save you £100 a month to go towards your private pension pot.

The full study, including a full breakdown of expense, is available at Profile Pensions.

Graduation is an exciting time but it can also bring high financial expectations that don't always match reality. A competitive job market, lower-than-anticipated income and higher-than-expected costs are just some of the realities facing post-secondary graduates, leaving many with a negative 'grad-itude'.

A TD survey found that the top financial pressures facing recent working post-secondary graduates are desires to become financially independent (52%), to save money so they can live on their own (39%) and concern over re-payment of their student debt (23%). In addition, 60% often felt guilty spending money on things they wanted versus using the money for other financial commitments, such as debt repayment, when they first started working.

"Today's graduates are ambitious and motivated, but the realities of the job market can lead to feelings of financial pressure and guilt when they're unable to afford many of the things they want," said Sue MacDonald, Associate Vice President of Everyday Banking Products at TD Bank Group. "Setting realistic and manageable goals and seeking advice from a trusted source such as a financial advisor is key to tackling new financial realities and starting off on the right financial foot."

One of the biggest challenges for new graduates is the fact that two in five (41%) found that it took up to one year to find a job. Once employed, 41% say they earned less than they had anticipated, with many facing unexpected expenses, such as transportation or commuting (33%), meals (25%) and buying a work-appropriate wardrobe (23%). It's hardly surprising then, that almost half (47%) of recent graduates say they feel anxious or overwhelmed at having to manage their finances on their own.

TD offers the following advice to help graduates reduce stress and still be able to have some fun as they transition to the next phase of life:

Make a plan: What are your short- and long-term financial goals? These can include paying down debt, such as student or personal loans, saving enough money to get a place of your own, or building up a nest egg so you feel financially independent. Decide what's most important to you and build a plan and speak to a financial advisor at your local branch who can help you with a strategy to achieve your goals.

Set and stick to a budget: Living within your means is always important, especially when discovering new financial realities of post-student life. Remember, you'll no longer be eligible for student discounts on things like transit passes, memberships or bank accounts. Setting and sticking to a budget and really asking yourself what is essential – like rent and debt repayment – versus what is a want – like travel or a new car – will help keep you on track. Once your budget is set, remember to track your spending. Money management apps, like the TD MySpend app, can be helpful tools since they help keep TD customers aware of certain types of transactions on eligible TD accounts and credit cards, and also provides  notifications of  spend transactions in real-time to help stay on budget.

Look for fun ways to save: Now that you're earning an income, it's an ideal time to establish new financial habits to help you save extra money that will help you reach your long term financial goals. When it comes to creative ways to stretch your dollar, below is some food for thought:

Don't try and keep up with others: Everyone's financial reality is different. Avoid trying to keep up with friends or colleagues who may be posting their lavish lifestyles on social media. It's important to know how much discretionary spending you can afford based on your own situation, rather than trying to keep up with everyone else.

(Source: TD Canada Trust)

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