1. Private & Confidential Project Management Institute 13 November 2012
Engaging
Generation
1
Robert Gardner
13 November 2012

2. Private & Confidential Project Management Institute 13 November 2012 2
Generation Y: Impact on Retirement Planning 2025

3. Private & Confidential Project Management Institute 13 November 2012 3
Millennial Generation
Generation Next
Net Generation
iPod Generation
Echo Boomers
Generation Y

4. Private & Confidential Project Management Institute 13 November 2012
Baby Boomer Generation X Generation Y Gen Z
• Now aged 49-64
• Idealistic, career-
oriented, consumerist
• Promoted ‘young’ and
propped
• Peak income earning
1991-2005
• Succession planning,
advisory boards, non-exec
directors
• Now aged 34-49
• Realists, cynical
• Held back by “old fart
log-jam”
• Peak income earning
2006-2021
• Office sandwich gen,
resentful of Boomer focus
on Y’s
• Must deal with baby
boomers in retirement
• Now aged 19-34
• By 2025 will make up
largest population of
workforce and fill senior
management roles
•Experiential, ethicists,
uncommitted to
career/relationships
• Helicopter kids; KIPPERS
• Technology savvy; global
thinking
• Inherit Boomer wealth
• Aged 19 or less
• Will enter workforce
from 2020
• First generation to be
taught internet computer
technology from age 5
Generation Timeline
1993-Present1978-19921963-19781948-1962
4

5. Private & Confidential Project Management Institute 13 November 2012
How Times Change....
5
5
Generation YGeneration X
5

6. Private & Confidential Project Management Institute 13 November 2012
Generation Y
Pension Provision – Shift in Responsibility
6
Defined Benefit Defined Contribution
Timeline
0 10 20 30 40 50 60Age 70
Defined Contribution
Defined Benefit

7. Private & Confidential Project Management Institute 13 November 2012
Generation Y
Challenges
7
7
“I believe that I will start my pension in my early 30’s.
By this stage of life, I will have steady income and thus
can afford to save a chunk of my income without a
compromise in my standard of living.”
-Vivek, student at Wyggeston & Queen College
• Attitude of consumption over savings
• Increased cost of living
• Myopic – short-term goal oriented
• Demand instant gratification
• Lack of financial education
• “Tech dependent” for communication
“I want to be able to do things now. I don’t want to
wait until I’m fifty and have a million dollars. By then I
won’t want to do these things and I will have missed
out”
-Anonymous
7

8. Private & Confidential Project Management Institute 13 November 2012
43%
Have never received any form
of financial education
“ I think the main reason for low uptake on pensions by
students is due to lack of knowledge and education of
saving and pensions schemes.”
-Anya, student at University of Oxford
Generation Y
Financial Planning
• In England and Wales financial planning is not
compulsory but features in Key Stage 3&4 (11 - 16yrs)
• Japanese children taught about pensions and saving for
retirement from an early age (11 - 18) by local
municipality officials
• Sessions not limited to schoolchildren
• All nationals between 20 - 59 are required to enrol
in the national pension plan
8

9. Private & Confidential Project Management Institute 13 November 2012
Engaging Generation Y
Social Media and Technology
9

10. Private & Confidential Project Management Institute 13 November 2012
Redington’s Seven Steps
10

11. Private & Confidential Project Management Institute 13 November 2012
Engaging Generation Y
Lifestyle Risk Management Framework
11
11
Objective Example Objective Example Performance Actual
Performance
State Your Objective
I want to retire at 65 with a
sufficient guaranteed
income to support my family
and myself.
I have £X,000 available in a lump-
sum upon my retirement in Y years
State your Risk Targets
To avoid sustained losses
and focus on steady-not-
super growth
Maximum loss any year should not
exceed 10% of my savings
State Your Dream Goals
I have a dream – to retire
happy when I’m 55
Savings contributions are greater
than originally planned
State your Biggest Fears
I am unable to save for
retirement or rainy days
AND spend on a sunny day
My long-term savings plan does not
leave enough cash in my pocket to
cover short-term expenses
Metric is at or above target Metric is more than 10% away from targetMetric is within 10%of target
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12. Private & Confidential Project Management Institute 13 November 2012
Applying DB to DC
12
Cutting Edge DB Pension Fund
“Return Asset” Portfolio
Liquid
Alpha& Beta
40%
70% Developed / 30
Emerging MSCI
Equities, 10% Volatility
Target
40%Risk Parity
20%CTA
Liquid Credit
40%
1 to 10 Year Go
Anywhere Credit, 75%
Investment Grade,
25% High Yield /
Leveraged Loan
30%
Over 10 Year GBP
Senior Investment
Grade Credit
30%
Over 10 Year USD
Senior Investment
Grade Credit
Illiquid Credit
33%
Investment Grade
Secondary Swaps
33%PFI Debt
33%Secured Leases
Illiquid Alpha
& Beta
50%Cat Insurance
50%Macro Hedge Fund
Portfolio after Applying DC Constraints
Liquid Alpha&
Beta
40%
10% Vol Controlled
Global Equities Fund
(Passive)
40%
Risk Parity Fund (Semi-
Passive)
20%
Absolute Return Funds
(GARS, Dynamic Asset
Allocation) (Active)
Liquid Credit
40%
75% Investment Grade
Fund (Passive)
25% High Yield Fund
(Semi-Active)
30%
Longer Duration UK
Investment Grade
Fund (Passive)
30%
Longer Duration US
Investment Grade
Fund (Passive)
Illiquid Credit 100%N/A
Illiquid Alpha
& Beta
50%
Cat Insurance Fund
(Semi -Active)
50%
Real Estate Fund
(Semi-Active)
Pragmatic “Day 1” Solution
Liquid
Alpha& Beta
100%
Risk Controlled
Multi-Asset
Strategy
Liquid Credit 100%
Broad Credit Fund
(Active) and/or
Range of Credit
ETFs
Illiquid Credit 100%N/A
Illiquid Alpha
& Beta
100%
Real Estate Fund
(Semi-Active)

13. Private & Confidential Project Management Institute 13 November 2012
Generation Y
Financial Education
13
Freddie Ewer
Analyst
Direct Line: 020 3326 7133
freddie.ewer@redington.co.uk
Jonathan Letham
Analyst
Direct Line: 020 3326 7108
jonathan.letham@redington.co.uk
• Financial education for young people in the UK is woefully inadequate, particularly given the responsibility placed on
the shoulders of young people by the DC pension system.
• Moneythink fills this gap, using the skills developed by young professionals to share knowledge and skills.
• Moneythink Redington is actively looking for partner organisations and schools to participate in our programme.

14. Private & Confidential Project Management Institute 13 November 2012
13-15 Mallow Street London EC1Y 8RD Telephone : +44 (0) 20 7250 3331 www.redington.co.uk
Contacts
Robert Gardner
Founder & Co-CEO
Direct Line: +44 (0) 20 7250 3416
Telephone: +44 (0) 20 7250 3331
robert.gardner@redington.co.uk
14
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