Gen Z turns to social media to save for the future as TikTok US ban debate rages on

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• As TikTok in the US wins a 90 day reprieve, Gen Z Brits are increasingly using social platforms to source important information for retirement planning
• A third of Gen Z are turning to social media for retirement planning information
• Standard Life provide hints and tips on using social media for retirement planning

As the future of TikTok in the US – and perhaps across the West as a result – hangs in the balance, new research¹ from Standard Life, part of Phoenix Group, highlights how social media is playing an increasingly important role in retirement planning, with a third (32%) of Gen Z using social media for information on the subject making it the single most used source.

Its latest Retirement Voice 2024 report shows that for Gen Z are some way ahead of Millennials in their reliance on social media with 25% of the older generation citing it a source.14% of Gen Z have used TikTok, 13% have looked at LinkedIn, 12% have turned to Twitter/X, 11% have used Instagram and 10% have relied on Facebook when looking for information or help in relation to retirement.

Despite a leaning towards social media, Gen Z hasn’t shunned more traditional information sources, 15% using their pension provider’s website, 13% their pension provider’s annual statement and one in ten (9%) using their pension provider’s app.

Mike Ambery, Retirement Savings Director at Standard Life comments: “Social media platforms are a consistent source of controversy however they are used by Gen Z not just for entertainment and a way of connecting with others, but also as a valuable source of information. Through social media channels, we have access to a wealth of knowledge including pension and retirement information. It can therefore be hugely powerful way of engaging more people with their finances and plan for retirement from an earlier age. In 2023 parliament passed a law to lower the age of eligibility for pension auto-enrolment to 18, but there’s currently no timescale for it to be implemented. Bringing young people into pension saving as soon as possible could help harness the power of planning via social media and set people up for a solid financial future from the very start of the career.

“Of course, it’s important to be wary of false information that can spread widely online. There have been a number of high-profile examples of social media being used to push unregulated investments so it’s crucial to balance the information taken from social media with more official and reliable sources, such as your pension provider.”

Mike’s Top Tips for Using Social Media for Retirement Planning

“Social media can be a helpful tool for understanding pensions and retirement planning, but it’s important to approach it with care. Here are key tips to make the most of social media while protecting yourself from misinformation:

1. Always verify the source

“Make sure to check the credibility of the information and the person or organisation sharing it. Reliable sources include financial institutions, government agencies, and certified financial experts. If you’re engaging with content made by a financial influencer, or ‘finfluencer’, take some time to look at their previous posts, find some background information if possible and check for any vested interests.

2. Double-Check Information

“Cross-reference any advice or claims you see on social media with official resources, such as your pension provider’s website, government tools, or guidance from a regulated financial adviser.

3. Be aware of generic versus tailored advice

“Social media often provides general advice that may not account for your personal circumstances. While it can be a useful starting point, tailor any suggestions to your specific goals, income, and your expected retirement timeline.

4. Stay Alert for Scams

“Be wary of posts promising quick wealth or overly simplistic solutions for saving. Scammers often target social media platforms, so avoid sharing personal information or clicking on suspicious links related to pensions or finances. Always remember – if something seems too good to be true, it probably is. “If you suspect you’ve been approached by scammers, report it quickly to the FCA online or on 0800 111 6768. And if you’ve lost money to a scam, you can report it to Action Fraud online or on 0300 123 2040, or Victim Support Scotland on 08001601985.”

ENDS

Notes to Editors

¹ - Ipsos Mori conducted research among 6,000 UK adults. Fieldwork was conducted between July and August 2024. Data was weighted post-fieldwork to ensure the data remained nationally representative on key demographics.

About Standard Life 

• Standard Life is a brand that has been trusted to look after peoples’ life savings for nearly 200 years.
• Today it proudly serves millions of customers who come to Standard Life directly, through advisers and through their employers’ pension scheme. 
• Standard Life is part of Phoenix Group, the largest long-term savings and retirement business in the UK. We’re proud to be building on nearly 200 years of Standard Life heritage together .
• Our products include a variety of Pensions, Bonds and Retirement options to suit people’s needs, helping our customers to invest and save for their future. We’re proud to offer a leading range of sustainable and responsible investment options. 
• We support our customers on their journey to and through retirement with comprehensive, easy-to-understand guidance so they can invest in the right way for their needs and plan a future they feel confident about. 
• The value of investments can go down as well as up and may be worth less than originally invested.