A growing number of young people in the UK and across Europe believe they may never be able to retire, raising concerns about falling engagement with workplace pensions among Gen Z and younger millennials.
The trend has been described as the rise of the “Never Ever Retiring Demographic”, or NERDs, a term used for people who expect to remain in work throughout their lives because they see retirement as financially unattainable.
Research from UK workplace pension provider People’s Pension found that 47% of Gen Z respondents aged 18 to 27 do not engage with their pension. Around 12%, equivalent to 2.2 million young people, have already stopped saving for retirement because they believe they will have to work indefinitely.
The findings come as younger generations face rising living costs, stagnant wages and growing uncertainty over major financial milestones. Buying a home, getting married, raising children and building retirement savings have become increasingly difficult for many young adults.
Unexpected job losses, particularly in the technology sector, have added to concerns about financial security. Geopolitical instability and inflation have also contributed to a sense of uncertainty about the future.
The research points to a communication problem between young savers and financial services companies. About 36% of Gen Z respondents said pension providers do not clearly explain the benefits of retirement saving.
Among those respondents, 27% said financial firms appeared more interested in selling products than educating customers, while 16% complained about complicated financial language. Another 20% said pensions were often presented as boring or irrelevant.
The gap is wider among younger respondents than older generations. Some 29% of Gen Z participants said providers failed to explain why pensions matter to them, compared with 13% of Gen X and Baby Boomer respondents.
The research also found that practical information could encourage more young people to save. About 70% said they would have been more likely to save if they had known that starting in their 20s could potentially double their retirement fund compared with beginning in their 30s. Another 63% said information about tax relief and employer contributions would encourage them to contribute.
Kirsty Ross, proposition director at People’s Pension, said young people were not necessarily rejecting pensions because they did not care about retirement. She said complicated language and fear-based messaging were failing to connect with them.
Young respondents said simple tools could make pensions easier to understand. Around 31% wanted progress bars or savings trackers, while 26% wanted reassurance that they could begin with small contributions. Others preferred examples from people their own age and short, practical guidance.
People’s Pension has responded with its Pension Drop campaign, which uses social media figures, events and lifestyle personalities to encourage conversations about retirement saving.
Comedian and television presenter Iain Stirling, an ambassador for the campaign, urged young workers to check their pension arrangements, make sure they receive available employer contributions and consider increasing payments after salary rises or bonuses.
