A new demographic cohort dubbed NERDs—the ‘Never Ever Retiring Demographic’—is emerging across the UK and Europe. This group, comprised primarily of Generation Z and millennials, believes retirement is unattainable and has consequently lost interest in contributing to pension schemes. The trend follows the earlier rise of FIRE (Financially Independent, Retire Early) advocates, but contrasts sharply with its optimism.
According to a recent study by People’s Pension, a major UK workplace pension provider, 47% of Gen Z respondents aged 18 to 27 do not engage with their pensions. Alarmingly, 12% of this demographic—equating to approximately 2.2 million young people—have ceased saving for retirement altogether, operating under the assumption that they will be working indefinitely.
Economists link this shift to a convergence of global cost-of-living crises, stagnant wages, and frequent layoffs, particularly within the technology sector. Geopolitical volatility and inflation have further eroded confidence in traditional life milestones, including homeownership, marriage, and child-rearing, making the concept of a future retirement feel increasingly distant.
Beyond socioeconomic pressures, the survey highlights a significant communication gap between financial services firms and younger clients. Thirty-six percent of respondents indicated that the industry fails to effectively convey the benefits of retirement savings. Specifically, 27% felt that companies prioritize product sales over financial education, while 16% cited confusing jargon as a barrier. Additionally, 20% of Gen Zers described pension communications as irrelevant or boring.
The disconnect is generational; only 13% of Gen X and Baby Boomer respondents felt pensions were poorly explained to young people, compared to 29% of Gen Z. Furthermore, 17% of younger respondents noted that firms do not utilize the digital channels where they are most active, a sentiment shared by only 4% of older generations.
Despite their disengagement, the data suggests a strong latent willingness to save if educated properly. Seventy percent of Gen Zers stated they would have started saving if they had known that beginning in their 20s could potentially double their retirement pot compared to starting in their 30s. Similarly, 63% reported being motivated by the knowledge that tax relief and employer contributions could significantly enhance their savings.
Kirsty Ross, proposition director at People’s Pension, emphasized that fear-based messaging is ineffective.
Finally, a term that validates my exhaustion. Saving feels pointless when wages are stagnant.
If financial firms used plain language instead of jargon, would more young people actually engage? I wonder if the industry is partly to blame.