Retirement poverty | Gen Z need financial education, and they need it now

In a time of increasing life expectancy, a cost-of-living crisis and a rising state pension age, retirement planning has become a critical concern for younger generations, especially Gen Z. However, many in this demographic seem to have little financial knowledge to deal with the challenges they face.

As the state pension age in the UK inches towards 68 between 2044 and 2046, it’s imperative that Gen Z starts saving for retirement as early as possible. Yet current trends and attitudes among Gen Z regarding retirement savings paint a concerning picture that demands immediate attention from both individuals and organisations.

Penfold, a private pension provider, recently shed light on Gen Z's pension saving habits, revealing that while they’re actively contributing to their pension pots, their average monthly contributions are merely £98.89.

At this rate, they’d need to save for a staggering 59 years before retiring between the ages of 77 and 85, well beyond their desired retirement age of 65, as stated by a YouGov survey.