Five ways to engage Gen Z with pensions and savings

They may not all be focused on looking too far ahead but there are ways Gen Z can be encouraged to consider their financial future.

You might think Gen Z (those born between 1997 and 2012) have a head start when it comes to saving for the future, growing up with a wealth of financial information at their fingertips.

However, a recent report by Yorkshire Building Society found Gen Z are struggling to save financially, with over a third (39%) admitting they lack the knowledge to make decisions around their finances.

This highlights the challenge of getting this generation engaged with planning for a secure financial future.

But, with a carefully designed strategy and a strong digital focus, we can help them make better informed decisions.

Here are five ways you can drive engagement from Gen Z when it comes to saving for their future:

1. Tailor your communications

The more personal the communication, the better. If a communication has been designed with Gen Z in mind through personalisation and language that’s easy to understand, they’re much more likely to engage with it.

Tailoring communications also means considering the most appropriate channels and how to present complex financial information. Would it be better presented as a story they can relate to or a graphic to highlight the key message?

2. Decide on the right channels

With hand-held devices being the norm for many Gen Z, apps are a great way to grab attention. Social media platforms also provide the opportunity to measure the campaigns through data, allowing you to monitor and track the performance of posts which helps to drive decision-making.

Gen Z tend to consume information through video content, unlike Baby Boomers (1946-1964) and Gen X (1965-1980) who might be more used to printed documents.

Companies who deliver financial information through video and more visual formats are more likely to see greater engagement from younger audiences in managing their money.

As a third of Gen Z claim they lack knowledge around pensions and savings, you could run workshops (in person or virtually) with your pensions provider or a regulated adviser to give them the opportunity to ask questions to support their financial education.

This will show them you care about their financial wellbeing and help give the awareness and understand they need.

3. Make savings fun through gamification

Online games are a great way to boost engagement and can help dispel any myths Gen Z might have around financial planning being ‘boring’.

Games that include interactive elements can create a buzz around savings and help promote the idea of delayed gratification – an important aspect of saving for the future.

What’s more, people can pick and choose where and when they play, giving them greater flexibility.

4. Have an ethical focus

With many reports suggesting Gen Z are willing to pay more for sustainable products and services, they’re likely to have an ethical focus when it comes to where their investments are going. So, show them the impact their contributions are having now and the difference they’re making to the world around them now. This will help create a sense of empowerment and align with their values.

5. Bring pensions to life

Online platforms can help bring workplace wellbeing and rewards to life. Show Gen Z stories of people they can relate to and the actions they’re taking for a more financially stable future.

You could offer the chance to play around with different scenarios through financial modelling tools to show the impact paying in earlier or a little extra can have.

Don’t forget to regularly check how communications are landing through short surveys – this will allow you to get real feedback and insight into what’s working well and where you might need to tweak and adapt your plans.