Top tips to engage younger employees with pensions and savings

Pensions aren’t exactly the hottest topic for younger workers which is why it’s important to engage them as early as possible.

For many younger employees, pensions feel distant, confusing and not particularly urgent.

But while Gen Z and Millennials focus on building their careers, they may be missing out on building their financial futures.

With rising living costs, student debt and a desire for financial flexibility, long-term savings often take a back seat. But the numbers are telling.

A Money & Pensions Service survey of 2,000 UK 18 to 25-year-olds found that 29% of those in work have never contributed to a pension, and only 54% are currently doing so.

While 87% of young people are saving in some form, most (51%) are focused on milestone goals such as buying a home or getting married. Just 13% are saving for retirement.

Auto-enrolment may bring them in, but true engagement - understanding, action and long-term value - is still lacking.

HR take notice of thisbecause financial wellbeing drives business performance.

Stressed employees are more likely to be distracted and disengaged, while those who feel financially secure are more productive, motivated and loyal.

Helping younger employees engage with pensions and savings isn’t just nice to have - it’s a strategic move.

It supports retention, strengthens your employer brand, and shows you’re invested in your people’s futures.

1. Lead with what matters now

Make pensions relevant by linking them to present-day priorities.

Retirement can feel a lifetime away for younger workers juggling rent, debt, and rising costs.

Framing pensions purely as a "later" benefit won't cut through. Instead, connect long-term savings to their current financial goals.

How to engage:

Offer workplace savings options like ISAs alongside pensions.
Run workshops on saving for milestones like travel, property, or emergencies.
Bundle pension education with financial wellbeing support on budgeting and debt.

Top tip - Start by meeting them where they are - then guide them to think longer term.

2. Make money talk easy

Use simple, punchy communication styles they’re used to.

Forget lengthy PDFs and pension jargon.

Social media is now the primary financial information source for 45% of young people; Gen Z and Millennials consume content in short-form videos, memes, and reels - so speak their language.

How to engage:

Share bite-sized tips via email or digital channels such as Teams and Slack.
Use explainer videos or animations to break down pension basics.
Create FAQ-style content that clearly answers “What’s in it for me?”.

Top tip - Keep it simple, visual, and scroll-stopping — just like their favourite feeds.

3. Show the power of starting early

Help them see the long-term impact of early saving.

Younger workers often don’t realise just how much of a head start they can gain by beginning their pension contributions early.

Showing them how time and compound growth work in their favour can be a game changer.

For example, research from the Institute and Faculty of Actuaries shows that starting a pension at 35 instead of 25 could result in a pot worth £500k at retirement instead of £800k.

How to engage:

Use visuals to show how starting at 22 compares to starting at 32.
Highlight the ‘free money’ available to them from employer contributions and tax relief.
Share relatable retirement income goals with tools like the Retirement Living Standards.

Top tip - Demonstrate that small steps now = big wins later.

4. Connect pensions to their values

Make sustainability part of the savings story.

Gen Z cares deeply about the planet and ethical business practices.

If your pension scheme includes ESG (environmental, social and governance) investment options, talk about it.

How to engage:

Promote any ESG or sustainable investment choices in your pension plan.
Share how pension savings can fund climate-positive or ethical companies.
Let them know how they can influence where their money goes.

Top tip - Align pension engagement with their personal values to spark interest.

5. Gamify the learning

Turn dry topics into engaging activities.

Pensions might not be thrilling - but learning about them doesn’t have to be dull.

Gamification boosts learning and makes it memorable.

How to engage:

Host a pension-themed quiz or interactive challenge.
Use game formats like “Who Wants to be a Pensionnaire?” in team sessions.
Offer prizes for engagement, like completing financial education modules.

Top tip - Make pensions less serious - and a lot more fun.

6. Embed it in your culture

Keep the conversation going beyond enrolment.

Auto-enrolment is a great start (for those aged 22 and over), but true engagement takes ongoing effort.

Make pensions and savings a visible, supported part of your workplace culture.

And don’t forget your 18-21-year-old workers who aren’t yet auto-enrolled.

How to engage:

Feature pensions in onboarding and early-career development.
Promote one-to-one sessions with a pension expert.
Celebrate Pension Awareness Day with events or campaigns.

Top tip - When pensions are part of your everyday culture, they stay on your people’s radar.

Bringing it all together

Engaging younger employees with pensions doesn’t have to be a battle - it just needs a fresh approach.

From tapping into their values and financial priorities to simplifying communication, small shifts can make a big difference.

It’s about turning pensions from a chore into a tool for empowerment - something that helps younger workers feel more in control of their future, not overwhelmed by it.

Now’s the time to turn insight into action - because when your people feel empowered about their future, your business benefits too.