Pensions have a big branding problem, which is putting off more Millennials and Gen Z from investing in their retirements.
With two million pensioners currently living in poverty – and almost 40 per cent of the population on track to experience poverty in retirement – that needs to change.
It is easier said than done, but a good start would be to challenge the negative stereotypes that put many younger people off saving for retirement in the first place.
Would you save for something that feels alien to you?
What three words would you use to describe a career? Progress, achievement, ambition might spring to mind.
Now try retirement. You’ll probably think of words like withdraw, retreat, or slowing down, which are synonyms of the word retire.
Whether you’re just starting out in your career or approaching your peak earning years, retirement might seem like an alien concept. Saving into a private pension in your 20s and 30s – when the state pension age is still decades away and keeps going up – could feel more like paying for someone else’s future rather than your own.
The industry should sell the outcome, not just the product
Too many Millennials and Gen Z aren’t saving for retirement because the industry isn’t selling it to them. It’s just marketing a financial product called a pension.
Pension marketing often focuses on putting money away consistently, cutting back where possible and setting rigid financial goals (like you should have £100,000 saved by the time you are 35), which can be off-putting, even when you emphasise all that free government money known as tax relief.
It’s a bit like a personal trainer offering years of strenuous workouts and diets without selling you the end result: your dream body.
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This doesn’t mean the industry isn’t already trying to rebrand retirement with terms like ‘financial independence’ and ‘personal freedom’. However, what people need is more real-life examples they can relate to, like case studies of retirement journeys, or how financial independence boosts your mental health as you get older.
Let’s combat ageism too
Age discrimination is still rife in UK workforces and culturally embedded. This is often wrongfully regarded as less serious or harmful compared to other types of discrimination.
Half of adults over 50 say they’ve experienced age discrimination, and research by Age Without Limits has found that most people aged 50 and above think the media and advertising depict older people negatively. These attitudes could have a negative impact on how people feel about their retirement, which may make pension products less appealing too.
So how do we overcome these stereotypes?
Let’s rebrand retirement as personal and financial freedom.
For example, the FIRE (Financial Independence, Retire Early) movement in America has inspired people to think about retirement proactively by saving more in early adulthood in order to reach financial independence earlier. But the main caveat is that unless you’re earning a high income or expecting a large inheritance before you turn 55 or 60, retiring early may not be achievable.
Boosting public confidence in pensions
In 2025, public confidence in the pensions industry fell for the first time in five years, with younger people and women less likely to trust the system. Daniel Taylor, client director at Trafalgar House, said pensions are still a “distant and complex concept” for many people, with younger people “notably less trusting” compared to their older counterparts.
Let’s start by filling the gap between what people understand and what they think they understand. For example, most adults claim they are financially literate but most don’t understand how savings accounts work. Teaching financial literacy in school is also essential.
Promoting semi-retirement is another option.
Many people choose to work part-time in their retirement, either out of choice or necessity. One of the main advantages is that you can continue to contribute to a private pension and enjoy the same tax relief to boost your income.
Dashboards can help boost engagement with pensions
Pension dashboards will enable people to see all their pension pots online, securely, in the same place – including their state pension.
This could help them understand where they are and how much more they need to save to ensure they have a minimum standard of living in retirement.
Richard Smith, an independent pensions professional and a leading advocate of pension dashboards, said:
“Once you can see a holistic picture of your total retirement provision, you’re in a much better position to decide, as part of a wider plan, when it makes sense to bring some of your pensions into payment, while continuing with some work or new experiences.”
If we want people to invest in their pensions, we need to convince them that saving for retirement is worth it. Even small, consistent contributions can make a big difference over time. This is particularly important for people who aren’t automatically enrolled in workplace pensions, such as self-employed people.
When used well, pensions are one of the most powerful tools we have for achieving lifelong financial independence – it’s time more people knew about it.
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