The new NERDs: The 2.2 million young adults who think pensions are pointless because they’ll never be able to retire

June 1, 2026

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:

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

People’s Pension have launched their Pension Drop campaign to get more young people talking about pensions. With the help of social media influencers, lifestyle gurus and special events – the campaign is dropping helpful pension know-how where people wouldn’t usually find it. It’s the latest effort in People’s Pension’s long history of standing up for all savers, whatever their age and stage.

Iain Stirling, comedian TV presenter and Pension Drop ambassador says: “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.

“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. 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.”

Iain Sterling’s small steps for a GOAT retirement, in partnership with People’s Pension:

Check who your pension’s with
Sounds obvious, but loads of us don’t even know. Step one is finding out where your pension actually is. Or if you have more than one! Take it further by spending 30 minutes reviewing your pension or setting aside a certain time each month to dedicate to future-you. It can make all the difference.
Don’t leave free money on the table
If you’re over 18 and working, chances are you’re already enrolled in a workplace pension. Your employer has to pay in too, and if you can afford to match them, you’ll be saving more for future you, while also receiving more tax-relief. That’s literally free cash for your future self.
Think of pay rises as pension rises
Every time you get a pay rise, up your pension by 1% or 2%. You’ll hardly notice it, but it adds up big time.
Bonuses aren’t just for blowouts
By all means enjoy some of it, but chuck a slice of your bonus into your pension pot, future you will thank you.
It’s about balance, not sacrifice
Save smarter not harder. You can still enjoy your Gails coffee and dinner with the lads or girls. Putting away small amounts today that don’t impact your day-to-day pleasures, means making sure future-you can still enjoy them.