Generation Z losing faith in retirement due to economic pressures

A new demographic known as NERDs (Never Ever Retiring Demographic) is emerging among Generation Z and millennials in the UK and Europe. These individuals believe they will never be able to retire due to economic pressures.

A study by the UK pension provider People’s Pension reveals that 47% of young people aged 18 to 27 are not actively engaging with their pensions. Most notably, 12%—approximately 2.2 million young people—have stopped saving for retirement entirely, driven by the belief that they will have to work indefinitely.

Key drivers for this trend include the rising cost of living, stagnant wages, and job insecurity in sectors like technology. The study also highlights a communication gap, noting that 36% of respondents feel financial companies fail to explain pension schemes effectively to younger generations.