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One in eight young adults say pensions are “pointless” as retirement feels out of reach – People’s Pension

Nearly half (47%) of Gen Zs aged 18-27 are not engaged with their pension.

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One in eight young adults say pensions are “pointless” as retirement feels out of reach – People’s Pension
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Data from People’s Pension found that one in eight (12%) young adults in the UK feel engaging with their pension is “pointless” as they don’t believe retirement is achievable. 

Nearly half (47%) of Gen Zs aged 18-27 are not engaged with their pension, and a third (36%) of young people said the financial services industry fails to communicate the benefits of saving for retirement well. 

One in five (20%) said financial services companies make pensions feel boring and irrelevant.

The research showed younger generations are switching off from pension saving, with many saying firms focus too much on selling products (27%) and use complicated language (16%). 

Nearly one in three (29%) Gen Zs felt companies don’t explain why pensions and savings matter for their age group, while four times as many Gen Zs said firms don’t use channels they actually engage with (17% compared to 4%).

70% said they’d act if told that starting to save in their 20s could double their retirement pot compared to starting in their 30s. 

66% said they’d act on the idea that £10 a week from age 25 could grow to £76,000 by retirement, and 63% were motivated by learning that every 80p saved is boosted to £1.60 through tax relief and employer contributions.

Gen Zs said the top things that would make pension savings feel less overwhelming are a simple goal tracker or progress bar (31% compared to 19% of Gen X and Baby Boomers), knowing they can start with a small amount (26% compared to 15%), examples of what people their age are doing (23% compared to 16%), clear bite-sized steps to follow (22%), and light-hearted relatable stories (19% compared to 8%).

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Kirsty Ross, proposition director at People’s Pension, said: “In a world where financial doom dominates pension conversations, young savers are tuning out. 

“Our research shows they are not disengaged because they don’t care, they are disengaged because the messages aren’t working. Scare tactics and jargon are alienating the very people we need to reach.

“What cuts through is honesty, simplicity and practical advice that shows how small steps today can have a huge impact tomorrow.”

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Ross added: “That’s why we’ve launched our Pension Drop campaign: to change the conversation and show how taking small steps now can make a big difference tomorrow – giving people back a sense of control over their financial futures.”

“People’s Pension has launched its Pension Drop campaign to get more young people talking about pensions. 

“The campaign is using social media influencers, lifestyle gurus and special events to bring pension know-how to new places.

Iain Stirling, comedian TV presenter and Pension Drop ambassador, said: “On the face of it, people probably think I’ve got it all sorted. I’m on TV, so it must look like I’ve got a perfect plan for the future. 

“The truth is, I didn’t. For years I only thought about the here and now – spending what I earned, saving for a house, maybe thinking one or two years ahead at best. 

“Retirement? Didn’t even cross my mind. I only started looking at my pension a couple of years ago, and I didn’t even know who my provider was. That’s how disconnected I was.”

Stirling added: “Looking back, I really wish I’d started earlier. Putting something away in your 20s or 30s can make a massive difference later, we’re talking tens of thousands of pounds. 

“And I get it, people are really struggling right now, money is tight, and even small luxuries like a takeaway can feel like a big deal. But the reality is, your pension isn’t all on you. 

“Things like employer contributions and tax relief can give you a boost, so even small amounts go further than you think.”

He said: “It doesn’t have to mean missing out today, just making smart moves so you don’t miss out tomorrow.

“Working with People’s Pension, has helped me to clean up my pensions act – and pick up a few tips along the way.”

Stirling’s tips include checking who your pension’s with, not leaving free money on the table, increasing pension contributions when you get a pay rise, putting part of bonuses into your pension, and balancing saving with enjoying small pleasures.

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