The new NERDs – The Never Ever Retiring Demographic

• 2.2 million young adults – one in eight (12%) – feel engaging with their pension is pointless because they don’t think they’ll ever be able to retire  
• A third (36%) of young people say the financial services industry fails to communicate the benefits of saving for retirement well 
• Of these, one in five (20%) say financial services companies make pensions feel boring and irrelevant 
• As a result of the industry failing to connect with them, nearly half (47%) of Gen Zs admit they are not engaged with their pension   
• Clear, practical, and upbeat pension messages were found to outperform scare tactics often used by financial services companies  
• People’s Pension says it’s time to change the conversation: ditch the doom and jargon, and focus on positive practical steps that make a big difference 

A new generation of Nerds – The Never Ever Retiring Demographic – is emerging across the UK, with 2.2 million young adults or one in eight (12%) saying it feels pointless engaging with their pension as they’ll never be able to retire. 

New research¹ from People’s Pension, the UK’s largest workplace pension provider of its kind, reveals that almost half (47%) of young adults (Gen Z aged 18-27) are not engaged with their pension. And, despite having time on their side, one in eight (12%) have already switched off altogether from saving for retirement as they believe they’ll have to work forever.  

A call to change the conversation 

The research highlights a worrying disconnect between the financial services industry and the next generation of savers with a third (36%) of young people saying the financial services sector fails to communicate the benefits of saving for retirement well.  

Of these people, one in four (27%) believe firms focus too much on selling products rather than educating people while one in five (16%) say they use complicated language/jargon. And one in five (20%) go further, saying financial companies make pensions feel boring and irrelevant. 

In stark difference to older generations, nearly one in three (29%) Gen Zs feel firms don’t explain why pensions and savings matter for people their age – more than double that of their parents’ generation, Gen X and Boomers (13%). Meanwhile, four times as many Gen Zs believe firms don’t use channels they actually engage with – 17% versus 4%.

What actually works 

The study tested different pension messages with younger audiences, which found that clear, practical, and upbeat messages far outperformed scare tactics: 

• 70% said they’d act if told that starting to save in their 20s could double their retirement pot compared with 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 
• 63% were motivated by learning that every 80p saved is boosted to £1.60 through tax relief and employer contributions 

Marking a step change from savings tactics that have been receptive with their parents’ generation, young adults say the top five things that would make pension savings feel less overwhelming and more achievable are: 

1. A simple goal tracker or progress bar – 31% versus 19% of Gen X and Baby Boomers 
2. Knowing they can start with a small amount – 26% versus 15% of Gen X and Baby Boomers 
3. Examples of what people their age are doing – 23% versus 16% of Gen X and Baby Boomers 
4. Clear bite sized steps to follow – 22%, the same as Gen X and Baby Boomers (22%) 
5. Light-hearted relatable stories – 19% versus 8% of Gen X and Baby Boomers 

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. 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.” 

ENDS