Gen Z see pensions as “not a priority”, according to polling conducted by the Society of Pension Professionals (SPP).
The results were shared at the first in a series of SPP events focused on pension adequacy. The session took place as around 15 million people are estimated to be undersaving for retirement and as the government plans to establish a new Pensions Commission to consider the issue.
More than 180 pension professionals attended the event and were asked what they believe is the main barrier limiting Gen Z’s interest in pensions.
Around 39 per cent of respondents selected “not a priority” as the biggest barrier. A further 29 per cent chose affordability while 15 per cent said lack of understanding or complexity was the main issue.
Other options were selected less frequently such as lack of trust, which was cited by 3 per cent of respondents and better alternatives by 2 per cent.
Society of Pension Professionals president Sophia Singleton says: “Industry needs to accurately identify any barriers to taking an interest in pensions before it can take steps to address them and encourage greater saving.
“The SPP’s industry polling reveals that more than two thirds of pension professionals believe that the biggest barrier to Generation Z having a greater interest in pensions is that it’s simply not a priority or that it’s unaffordable.
“It was interesting to note that a lack of trust or better alternatives – two reasons often put forward by commentators as reasons for younger generations not engaging, were in reality not thought to be significant barriers at all.
“The Pensions Commission is focussing on Millennials (i.e. those retiring by 2050) because they are at risk of being left behind. That’s why we need to ensure our message is getting through to future generations.”
