Oct. 6: BEST FROM THE BLOGOSPHERE

October 6, 2025

In the U.K., Gen Z confident about retirement, despite not saving or having pensions

Despite “the high cost of living, stagnating wage growth and lower job security,” a surprising 38 per cent of British Gen Zers say they are “confident in their financial future,” reports This is Money.

The data, compiled by U.K. pension firm M&G, found that only 17 per cent of those aged 45 to 54 shared that confidence, the publication adds.

“Although almost half of Gen Z don’t currently have a workplace pension, a fifth still expect to be able to retire when they are in their 50s,” the article reports, adding “this is despite the fact their pension age is likely to be at least 68.”

This suggests, the publication continues, a disconnect among younger folks about how much money they’ll need when they are retired, and when to start saving.

“It suggests young people’s optimism might be down to a lack of information about how much they need to save for retirement — and how much of a difference it can make if they begin saving earlier in life,” This is Money adds.

Alarmingly, only 30 per cent of Gen Zers asked fear running out of money in retirement, compared to 44 per cent of those “in their late 20s and early 30s” and 52 per cent of those aged 35 to 54, the publication continues.

 “It’s refreshing to see such positive attitudes from Gen Z towards their financial futures, but optimism alone isn’t enough to guarantee a comfortable retirement,” M&G’s Anusha Mittal tells This is Money.

There should be more focus on long-term retirement savings, even for the young, the article adds.

“As few as eight per cent of 18 to 24-year-olds say that building a pension pot is one of their financial priorities. Some 49 per cent said a priority was to spend money on things they enjoy,” the article explains.

Indeed, retirement saving may not be much of a priority for younger Britons, the article notes.

“Most of my savings go towards life experiences, especially travel, which I see as a valuable way to spend money while I am still young,” assistant psychologist Cynthia Wong, 27, tells This is Money. “I believe that wealth is defined by meaningful experiences, and I prioritize them over saving for things that feel distant like retirement,” she states in the article.

Wong goes on to say that saving for retirement may become more of a priority for her later on.

M&G’s Mittal contends that now is the time to start retirement saving.

“Unless Gen Z’s enthusiasm is matched by action — including better understanding of where their money is going, how much they’re saving, and whether it’s enough — they could be sleepwalking into a ‘too little, too late’ scenario when it comes to retirement readiness,” she states.

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This Is Money

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