Only 9% of Gen Z have ever used their pension provider’s app at all

New Penfold research shows a gap between how young people manage money day to day and how they engage with their pension

Gen Z manages almost every part of their financial life on their phone. But pensions are still being left behind.

New research from Penfold’s 

Only 9% of Gen Z have ever used their pension providers app. The generation that pays rent by tapping, splits dinner by QR code and tracks their salary to the moment it lands is paying little attention to their pension, with only 8% of 18–24s having checked their State Pension forecast on gov.uk, compared to 44% of over-55s.

The findings suggest that young savers are not disconnected from money. Instead, pensions are not keeping pace with how Gen Z expects to manage their finances.

Chris Eastwood, CEO of Penfold, said: “Gen Z is not disengaged from money as they’re checking bank balances, moving money and learning about finance every day. But when it comes to pensions, the industry still expects them to engage through channels that do not feel natural to them.

“When young savers need financial information, many are turning to social media before they turn to their pension provider, and that should be a wake-up call for the industry.”

Penfold’s report found that 45% of young UK savers use social media as their primary source of financial information. This puts social media ahead of direct provider emails at 33% and in-app messages at 29%. The report also points to a clear confidence gap, with over a quarter of Gen Z savers rating their pension understanding as 10 out of 10, but only 10% pass a basic pension literacy test.

59% of Gen Z savers also think auto-enrolment alone means they are saving enough for retirement. But for many people, minimum auto-enrolment contributions are unlikely to provide enough income for a comfortable later life. Furthermore, only 58% of Gen Z know their State Pension eligibility age, compared with 85% of Gen X, while 30% of 22–29-year-olds say they do not know how much income they will need in retirement.”

The findings come as young workers face growing pressure on their finances, with just 46% believing the State Pension will still exist when they reach retirement age, while financial education reaches only 41% of UK under-24s.

Eastwood added: “The confidence gap matters because young savers may think they are on track when they are not. Auto-enrolment has helped millions of people start saving, but it does not mean the job is done.

“Employers should not assume that silence means confidence. If young employees are not asking questions about pensions, it does not mean they understand them. It may mean the information is not reaching them in the right way.

“Workplace pensions need to be clear, simple and available on the device Gen Z already uses for everything else. If the industry wants young savers to engage, it needs to make pensions feel easier to understand and easier to act on,” concluded Eastwood.

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