Let’s face it — pensions aren’t exactly the hottest topic around the water cooler. For younger staff members, these
concepts often seem remote, complicated, and lacking immediacy. Yet while Millennials and Gen-Z focus on career
development, they might be overlooking critical opportunities to secure their financial independence.
With the cost of living on the rise, student loans mounting, and a growing preference for financial freedom, long-
term saving often slips down the priority list. Yet the figures speak volumes. A survey by the Money & Pensions
Service, involving 2,000 UK adults aged 18 to 25, revealed that 29% of those in employment have never paid into a
pension, and just 54% are currently making contributions. Although 87% of young people are saving in some way,
the majority (51%) are focused on key life events such as purchasing a home or getting married. Only 13% are
putting money aside for retirement.
While auto-enrolment gets them started, genuine engagement—awareness, action, and a sense of long-term
value—remains noticeably absent.
Why should HR pay attention? Because financial wellbeing has a direct impact on business outcomes. Employees
under financial pressure are more likely to be distracted or disengaged, whereas those who feel in control of their
money tend to be more focused, driven, and loyal to their employer.
Supporting younger staff in understanding and engaging with pensions and savings isn’t merely a nice bonus — it’s a smart business decision. It can boost retention, enhance your employer reputation, and signal that you genuinely
care about your team’s long-term wellbeing. In today’s competitive job market, that makes a real difference.
Keep reading for our top tips on helping the next generation get to grips with pensions and savings.
1. Lead with what matters today
Make pensions feel relevant by tying them to what younger employees care about right now. For those balancing
rent, debt, and the rising cost of living, retirement can seem a distant concern. Simply positioning pensions as a
benefit for "someday" isn’t enough. Instead, show how long-term saving can support their immediate financial
ambitions.
How to engage:
- Offer workplace savings options like ISAs alongside pensions.
- Run workshops on saving for milestones like travel, property, or emergencies.
- Bundle pension education with financial wellbeing support on budgeting and debt.
Top tip - Start by meeting them where they are—then guide them to think longer-term.
2. Make money conversations simple
Keep your messaging clear and engaging, using the formats they’re familiar with. Ditch the dense PDFs and confusing pension terminology. With 45% of young people turning to social media for financial guidance, Gen-Z and Millennials are used to learning through short videos, memes, and reels - so meet them where they are and speak in their style.
How to engage:
- Share bite-sized tips via email or digital channels such as Teams and Slack.
- Use explainer videos or animations to break down pension basics.
- Create FAQ-style content that clearly answers “What’s in it for me?”.
Top tip - Keep it simple, visual, and scroll-stopping — just like their favourite feeds.
3. Show the power of starting early
Help them see the long-term impact of early saving. Younger workers often don’t realise just how much of a head start they can gain by beginning their pension contributions early. Showing them how time and compound growth work in their favour can be a game-changer. For example, research shows that starting a pension at 35 instead of 25 could result in a pot worth £500k at retirement instead of £800k.
How to engage:
- Use visuals to show how starting at 22 compares to starting at 32.
- Highlight the ‘free money’ available to them from employer contributions and tax relief.
- Share relatable retirement income goals with tools like the Retirement Living Standards.
Top tip - Demonstrate that small steps now = big wins later.
4. Connect pensions to their values
Make sustainability part of the savings story. Gen-Z cares deeply about the planet and ethical business practices. If your pension scheme includes ESG (Environmental, Social, Governance) investment options, talk about it.
How to engage:
- Promote any ESG or sustainable investment choices in your pension plan.
- Share how pension savings can fund climate-positive or ethical companies.
- Let them know how they can influence where their money goes.
Top tip - Align pension engagement with their personal values to spark interest.
5. Make learning feel like a game
Transform traditionally dull subjects into something people actually want to engage with. Pensions might not scream excitement, but learning about them doesn’t have to be boring. Gamification helps boost interest and makes key info stick.
Ways to spark interest:
- Run a quiz or interactive challenge with a pension twist.
- Try team formats like “Who Wants to be a Pensionnaire?”
- Reward participation—offer small prizes for completing financial learning modules.
Top tip - Align pension engagement with their personal values to spark interest
6. Embed it in your culture
Keep the conversation going beyond enrolment. Auto-enrolment is a great start (for those aged 22 and over), but true engagement takes ongoing effort. Make pensions and savings a visible, supported part of your workplace culture, and don’t forget your 18–to 21-year-old workers who aren’t yet auto-enrolled.
How to engage:
- Feature pensions in onboarding and early-career development.
- Promote one-to-one sessions with a pension expert.
- Celebrate Pension Awareness Day with events or campaigns.
Top tip - When pensions are part of your everyday culture, they stay on your people’s radar.
Bringing it all together
Engaging younger employees with pensions doesn’t have to be a battle—it just needs a fresh approach. From
tapping into their values and financial priorities to simplifying communication, small shifts can make a big difference. It’s about turning pensions from a chore into a tool for empowerment — something that helps younger workers feel more in control of their future, not overwhelmed by it.
At Avantus, we’re proud to support organisations in making pensions and savings more accessible and engaging through the right partnerships and tools. Now’s the time to turn insight into action — because when your people feel empowered about their future, your business benefits too.
