Ryan FowlerThe recent trend towards ‘lazy jobs,’ where employees do just enough to meet their job requirements without seeking career advancement, has become more prominent in the post-pandemic era. This approach, often discussed under terms like ‘bare minimum Mondays’ and previously ‘quiet quitting,’ is popular among Generation Z and Millennial workers in white-collar roles. Despite its appeal, new research from Standard Life, a part of Phoenix Group, suggests such a work attitude could have significant consequences for retirement savings.
Standard Life’s analysis shows the potential impact of different salary growth scenarios on retirement funds. An employee starting with a salary of £25,000 and making minimum pension contributions could expect a retirement fund of £488,000 by age 68 with a yearly salary increase of 3.5%. This projection falls to £302,000 with just a 1% annual salary rise, illustrating a potential loss of £186,000 compared to the 3.5% scenario. Conversely, if salary growth is at 5% annually, the retirement pot could increase to £680,000.
Gail Izat, managing director for Workplace at Standard Life, highlighted the broader implications: “‘Lazy jobs’ and ‘bare minimum Mondays’ seem to have replaced ‘quiet quitting’ as popular ways to describe slowing the pace down at work, and they’ve come to be associated with Gen Z and younger Millennials. In reality, stereotyping different generations is unhelpful and people are likely to have similar goals for their financial security and overall wellbeing. While there’s some evidence that younger generations place a greater emphasis on wellness at work, this isn’t incompatible with career progression. What’s clear from the analysis is that over time, low salary growth could have significant retirement consequences and this should be considered as part of people’s decision making.”
Izat also emphasised the role of employers and pension providers in raising awareness about the importance of considering long-term savings as part of overall wellbeing. Tools like online pension calculators and resources from the Pensions and Lifetime Savings Association (PLSA) can aid employees in understanding the potential future impacts of their current employment choices on their retirement lifestyle.
