Young people’s interest in contributing to a pension is being hampered by other priorities being seen as more important and a lack of affordability, according to the Society of Pension Professionals (SPP).

In a poll that asked around 180 pension professionals what they saw as the biggest barrier to Generation Z’s pension uptake, more than a third (39 per cent) said it was because pensions were not a priority for young people.

Meanwhile, 29 per cent cited affordability as the main barrier, and 15 per cent believed that a lack of understanding and complexity was the primary obstacle.

Other suggestions were seen as less likely to be acting as barriers, including a lack of trust in the sector, cited by 3 per cent of respondents, and that there were perceived to be better options, chosen by 2 per cent.

SPP president, Sophia Singleton, argued that the pensions industry needed to accurately identify any barriers to taking an interest in pensions before it can take steps to address them and encourage greater saving.

“The SPP’s industry polling reveals that more than two thirds of pension professionals believe that the biggest barrier to Generation Z having a greater interest in pensions is that it’s simply not a priority or that it’s unaffordable,” she stated.

“It was interesting to note that a lack of trust or better alternatives – two reasons often put forward by commentators as reasons for younger generations not engaging, were in reality not thought to be significant barriers at all.

“The Pensions Commission is focussing on Millennials because they are at risk of being left behind. That’s why we need to ensure our message is getting through to future generations.”

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