Generation Z retirement savings decline amid cost-of-living crisis

Generation Z retirement savings cost of living crisis NERDs demographic pension planning

A growing demographic of Generation Z and Millennials, referred to as NERDs (Never Ever Retiring Demographic), believe they will never be able to afford retirement. This trend is driven largely by the global cost-of-living crisis, which has significantly limited financial flexibility for young people.

A study by People’s Pension in the United Kingdom indicates that 47% of Gen Z individuals aged 18 to 27 do not engage with retirement planning at all. Furthermore, approximately 12%—representing roughly 2.2 million young people—have completely stopped saving for retirement due to the conviction that they will have to work indefinitely. This shift in mindset contrasts with previous movements like FIRE (Financially Independent, Retire Early), as young people increasingly view traditional retirement and other long-term goals, such as homeownership, as unattainable.

Entities

ADAC Foundation · GEMA · Generation Z · Italy · Justin Phillips · Millennials · Nature Human Behaviour · People’s Pension · University of Southampton

Claims

What the coverage asserts, and how many sources carry each claim.

[● 3 SOURCES] A major influencing factor is the intrusion of smartphones and apps into daily life, including use before sleep, after waking, during homework, or in school.
[● 3 SOURCES] The academic lag for early social media users is approximately six months compared to peers.
[● 3 SOURCES] A study published in the journal Nature Human Behaviour in August 2026 examined 5,227 Italian schoolchildren.
[● 3 SOURCES] Children who started using social media at age 11 instead of 14 showed weaker performance in mathematics and reading years later.
[● 3 SOURCES] Digital media expert Justin Phillips suggests that uncontrolled usage and the encroachment of smartphones into all life areas, rather than screen time itself, causes harm.