Just over one in eight (13 per cent) young people could not answer a question correctly in a four-part true or false pension quiz, research from the Money and Pensions Service (Maps) has found.

The research revealed that one in 10 (10 per cent) answered all four questions correctly, suggesting that young people could not demonstrate basic pension knowledge.

The figures oppose the level of knowledge young people think they have, as 50 per cent of young people said they understood the basics of pensions ‘very’ or ‘fairly’ well.

Maps, as part of National Apprenticeship Week, has urged businesses that offer apprenticeships to encourage their young workers to learn about pensions and other key financial decisions, alongside their employment skills.

The organisation said that by offering pension skills alongside employment skills, employers could equip young people with a "good" financial education and ensure they start their careers on the “right financial footing”.

Indeed, the research revealed that people who enjoy good financial wellbeing are more productive at work.

The organisation said learning about how pensions work, including benefits of employer contributions, tax relief, and how money grows, is “vital” for young people, as without this knowledge, they cannot make informed financial decisions that affect the rest of their lives.

Maps head of money and pensions policy, Jackie Spencer, said National Apprenticeship Week is the “perfect time” to remind young people to consider their pension, and said that businesses have a part to play in this.

“For many, this could be the first time they are earning a wage, and they might not have had the opportunity to contribute to a pension before,” she said.

“Support your young apprentices by teaching them about how pensions work and explain that they can opt-in even if they don’t meet the criteria.

“In doing so, you’re putting your employee’s wellbeing at the forefront of your organisation, leading to an overall positive experience for your staff and increasing retention.

“The earlier young people understand and can contribute to their pensions the better, and we’d love to see businesses help them to get there.” 

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