Why Gen Z are opting out of workplace pensions

Hassan Nassar, 26, stopped contributing to his NHS workplace pension in early September. He had been putting in about £430 a month, but says he needs the money for rent, loan repayments, a first home and caring for an ill family member.

Nassar says he wants to rejoin the scheme when he can. He had paid 10.7% of his gross salary into it, with additional contributions from the NHS, and believes he can still build enough savings over his working life.

Evie, 22, who works for a London events company and lives in Cornwall, also chose not to join her workplace pension. She is aware of the long-term cost but says other financial needs take priority for now.

Workers aged 22 or older who earn more than £10,000 are generally enrolled automatically in workplace pensions, though exceptions apply. The article says more young and middle-aged workers are opting out amid pressure on household budgets.

Pensions Minister Torsten Bell warned that younger workers may retire with less private pension income than people retiring today. Financial adviser April Leeson says workers should consider lowering contributions, where their employer allows it, rather than stopping altogether.