The barriers to wider life savings products participation amongst youths : a study

Abstract

The changing demographics of developed countries have contributed to an increase of dependency on the working population to pay for pensions. Malta is no exception. This means that youths, as the working population of today and tomorrow, will have to carry such everincreasing burden. Thus, youths must be aware of this issue and also search other options when planning for retirement funding. This study investigates the current level of life insurance awareness amongst Maltese youths. It also presents an analysis of the low share of youths that own life insurance savings products for retirement purposes. The research included online questionnaires to Maltese youths and interviews with insurance company representatives. These determined the communication barriers that obstruct the relationship between life insurance companies and youths. The majority of youth participants do not own such policies. Trust, affordability and lack of financial education were found to be factors that affect this low rate. Finally, the research provides various suggestions to life insurance companies. These can be utilised in order to bridge the communication gap with young people and gain long-term loyal customers.