5 reasons for Gen Z workers to prioritise their Pension

Money makes the world go round!

And in 2024, that’s never been more true. With the cost of Freddos soaring (the true scale of inflation for most) and your weekly shopping trip costing more, there’s no wonder people are opting to live in the moment.

But how sustainable is that approach?

Pensions won’t always be the most inspiring of subjects, but setting yourself up for a comfortable retirement has never been as important as it is now. According to our research, 28% of businesses say they’re now offering increased Pension contributions.

Generations of the past may have been savvy savers, but Generation Z are certainly feeling the pinch of rising costs. So, rather than prioritising today, here’s our top 5 tips for why it’s important to plan for tomorrow.

It’s a bitter pill to swallow, but every morning we’re another day closer to retirement. Father time impacts us all, and there’s nothing we can do about it.

The good news for Generation Z is that they’re the first generation to automatically be enrolled into a pension from the start of their career. Many previous generations have taken months, sometimes years to get their retirement fund up and running, so although it may only be a small amount being reserved for later life, it’s certainly a start.

This means benefitting from aspects such as compound interest, on top of employer savings. Ultimately, the hard work has already been done without the need for Gen-Z to lift a finger, so just make sure you’re engaging with your pension, contributing and understanding where your money is being invested. A sustainable Pension is always the right way to go.

Where would we be without the internet?

For some, it’s hard to imagine a life before mobile technology. Previously, employees may have received Pension updates perhaps once every year. Now, with the world at your fingertips, you can access information about your retirement fund in seconds.

From provider apps to employer educational tools, saving for your golden years has been made ever so simple. And with the introduction of artificial intelligence starting to dominate the way we go about our daily lives, we can now see a much more accurate reading on our projected final Pension pot.

Could cover your entire day-to-day living costs with a weekly contribution of just £203.85?

That’s the maximum new state pension payment for those that reach 66, as things stand. £10,600 a year. Hardly fills you with confidence, does it?

Recently, our own Pension guru, Joy Waugh, looked into what employees should be saving to ensure a comfortable retirement. And with costs rising and mortgage terms increasing, it’s important to ensure you have plenty stashed away to fund yourself post-employment.

Now we know how Bill Murray felt in Groundhog Day (maybe we’re showing our age). As we continue to ride the wave and live through the most recent cost of living crisis, one of the biggest concerns for many is money.

Many Generation Z employees are delaying moving out from their family home because they can’t afford to rent or own, meaning now is the perfect time to save. With higher disposable incomes, putting the pounds away while you can is a sure-fire way to set yourself up for a comfortable retirement.

Wait, are they really going to say there was a positive to the Covid-19 pandemic and lockdown?

Many Generation Z employees witnessed first hand the impact of not having short-term savings during lockdown.

The pandemic caused concerns over money, and it spiralled to saving money being at the forefront of Gen Z’s mind. In turn, that helps educate about long-term savings, making sure that there will be funds to live comfortably, travel and socialise.

Having seen lockdown stop the wonderful world as we know it, there’s been a huge desire to be able to travel more and do the things we love. Only through saving will we be able to do that going forward. That, in turn, will also help prepare for the day when you wave goodbye to employment.

Want to help your employees prioritise their Pension?

If you’re keen to know how Zest can help employers prioritise Pension savings and offer the right technology for employees to access it, book a demo with our amazing team today.