Gen Zs won’t start taking their pension seriously until they are 34

Rotimi Merriman-Johnson from Mr MoneyJar claimed that by investing this amount, it could lead to a pot of £560,000 by the age of 67, based on a conservative average annual return of five per cent.

This total figure exceeds The Pension and Lifetime Savings Association’s (PLSA) 2025 Retirement Living Standards’ recommended minimum pension pot, needed for a single person to achieve a comfortable lifestyle in retirement by £20,000.

But to achieve this contribution, not all of it would need to come from an employee’s pay.

Under auto-enrolment rules, the equivalent of eight per cent of an employee’s gross salary goes into their pension every month - four per cent from the employee, one per cent in the form of government tax relief on the employee’s contribution and three per cent from their employer.

The expert advice comes after research of 1,000 Gen Z adults aged 18 – 28, which forms part of this report by smart money app Plum, found 53 per cent are yet to start saving for their pensions.

And one in five haven’t put any thought into it either - even though 63 per cent think they will be able to retire comfortably.

On average, they reckon they will start taking their pot seriously at the age of 34.

As over a quarter (27 per cent) don’t think they earn enough to save at the moment and 16 per cent have never been told what a pension is or how it works.

While 62 per cent simply believe retirement feels too far away for them to worry about.

Rotimi, speaking in partnership with Plum, said: “Many people feel overwhelmed by pensions, but thinking about your future finances doesn't have to be daunting.

“The key is understanding how advantageous it can be to start investing in your pension as early as possible, to take advantage of the power of compounding.

“Saving money into your workplace pension also nets you 'free money' in the form of employer contributions and crucial tax relief from the government.

“Don't underestimate the impact that consistent, forward planning, and making the most of all available benefits can have on securing the retirement you deserve."

“Saving money into your workplace pension nets you free money”

The research also found a bigger salary (41 per cent), and clearer information (34 per cent) would help them feel more confident when starting a pension.

As 11 per cent don’t understand how pensions work – and 32 per cent only know a little bit.

While 33 per cent would like to know how much they need to save for their retirement, and 23 per cent would value an app or tool to guide them through the process.

But one in 10 just want to travel and enjoy their money while they are young.

Positively, even though there is a lack of knowledge, 85 per cent are aware that small, weekly contributions can make an impact on their pension pot.

And they think they would need to save an average of £306 each month, including their company’s contributions, to retire comfortably in life, according to the figures by OnePoll.

Rajan Lakhani, head of money at Plum said: “Forward planning can literally make a world of difference to how you’ll live your life.

“But it seems it’s not very high on the agenda for young people and our research shows this could be down to lower salaries and lack of knowledge.

“It is, however, promising that they understand the importance of pension contributions for a comfortable retirement.

“And the amount that those polled think they need to save is close to the actual amount needed according to experts, suggesting they know what they need to do.

“Starting early with even small deposits to your pension is key, as these add up considerably by the time you reach that stage.

“As well as your pension, it can be highly beneficial to save into a Lifetime ISA (LISA) as you can get 25 per cent of your contributions matched each tax year from the government up to £1000. This can be put towards your retirement or a house deposit.”