New research reveals a stark disconnect between Gen Z’s retirement aspirations and their saving behaviour. A poll of 2,000 working adults by Skipton Building Society found that over a quarter (27%) of Gen Z want to invest their pensions in experiences rather than possessions, and 16% dream of moving abroad. Yet a third (33%) admit they have no idea how much they contribute to their pension each month.
Nearly two-thirds (61%) of Gen Z say they would be devastated if they could not achieve their dream retirement, but pension saving remains a low priority. Standard Life’s Retirement Voice 2025 report shows only 13% of Gen Z view pension saving as a top financial goal, with day-to-day finances, holidays and property all ranking higher. Over a third (35%) prefer to “live for today”, and 23% expect to rely on inheritance.
Helen McGinty of Skipton Building Society warns of a “worrying disconnect” between dreams and action. “Gen Z need to wake up to the reality that those dreams won’t happen without planned and considered action,” she says. Contributing to the problem is overconfidence in auto-enrolment: 59% believe being automatically enrolled means they are saving enough.
Standard Life modelling shows that someone on £25,000 contributing the minimum 8% from age 22 would build a pot of about £210,000 by 68 – far less than needed for a lavish retirement. Increasing contributions to 10% could boost that to £262,000. Mike Ambery, retirement savings director at Standard Life, cautions: “Only a small minority prioritise pensions, and many assume minimum auto-enrolment contributions will be enough, which for most is unlikely to deliver the retirement they expect.”
Gen Z are not averse to investing – 25% have invested in stocks and shares and another 25% in cryptocurrency, and 48% are comfortable taking financial risks. However, they lack direction. Ambery notes that pensions remain “one of the most effective ways to build wealth over time” thanks to employer contributions and tax relief. Gen Z also aim to retire at an average age of 60, well before the state pension age of 67, making disciplined saving even more critical.
