Young people aged between 18-24 (Gen Z) are the most likely age group to opt out of making pension contributions, with 17 per cent of this cohort doing so, according to research from Penfold.

The study also found that 15 per cent of Millenials, aged between 25 and 41, were opting out of contributing to their pensions.

Generation X, or people aged between 42 and 57, were opting out at the lowest rate at 10 per cent and were also the most likely to make additional pension contributions.

According to Penfold, 32 per cent of Gen Z savers that were opting out of their pensions were doing so in order to save for a home, while 31 per cent were opting out to save for material goods and 28 per cent to afford a holiday abroad.

Meanwhile, the third biggest concern people wished to address was that they will not be able to save for retirement, with 29 per cent citing this as a worry.

The rising cost of living was found to be the most commonly cited concern at 58 per cent.

Penfold also highlighted a 91 per cent increase in complaints about investments and pensions in 2021, with the number of annual pension complaints expected to rise by over 17 per cent by the end of the year.

The most common complaints amongst the worst-performing providers were poor customer service, a lack of transparency, and unreliable handling of data and finances.

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