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Thu, 01 Oct 2026

Thu, 01 Oct 2026 'It could cost me £10k but I need the money now': Why Gen Z are opting out of pensions

A growing number of people are opting out of these schemes due to cost-of-living pressures.

*Around 2.5 million people are not contributing to their workplace pension, with a rising number of young workers opting out due to financial pressures.
*According to DWP data, 11.5% of 22-29-year-olds and 12.7% of 30-39-year-olds who started a new job in the past three months opted out of their pensions.
*A growing number of Gen Z and millennials are choosing not to contribute to their workplace pensions due to cost-of-living pressures, which could result in lower private pension incomes for future retirees.
*The government has warned that young workers who opt out of their pensions may be on track for lower private pension incomes than people retiring today.
*Some individuals, such as trainee GP Dr Hassan Nassar and teacher Kharlee, have opted out of contributing to their workplace pensions due to financial reasons but plan to start again once their circumstances improve.
*A chartered financial advisor recommends that people try to continue saving into their pensions even if it means reducing contributions, due to the potential for lost compound interest.