Pensions - Articles - How attitudes to work could shape long term saving


#Corporatelife emerges as latest Gen Z-led social media trend – what it could mean for long-term saving. Embracing a “locked in” career approach could significantly boost retirement savings over time. Standard Life analysis highlights how salary growth rates can affect pension outcomes, with differences of up to £80,000 (38%) between career strategies

 It’s another month, and there’s another viral workplace social media trend – this time it’s #corporatelife, in which young professional influencers showcase the more glamorous side of their office jobs. Beyond the carefully managed posts, the trend highlights a broader shift in how younger workers approach their careers.
 
 For some, #corporatelife is about 'locking in' – staying focused on the task at hand while prioritising career progression and maximising their salary. Others highlight the benefits of 'unbossing' – ditching traditional career paths and prioritising work-life balance over promotions into management or other more senior roles. Research from recruitment company Robert Walters found that 52% of Gen Z employees are not interested in becoming middle managers, with 16% actively avoiding roles involving direct reports.
 
 While in reality most people are likely to experience some ‘locked in’ days and some where they feel a bit more like unbossing, the trends are reflective of the influence of social media on how younger workers approach #corporatelife and work in general as the next generation of employees adapts to working life in 2025.

 How career choices today could shape retirement tomorrow
 Analysis from Standard Life, part of Phoenix Group, highlights how consistent focus on career progression - a hallmark of the “locking in” mindset - could have a significant impact on someone’s long-term savings. For example, someone starting work at age 22 with a starting salary of £25,000 and making the minimum auto-enrolment pension contributions of 8% of their salary (5% employee, 3% employer) could build a pension pot of £210,000 adjusted for inflation* by the age of 68 if their salary grows at a moderate rate of 3.5% annually.
 
 Those who pursue accelerated career growth, achieving average annual salary increases of 5%, could see their retirement fund grow to £290,000 in today’s prices - significantly improving their financial position later in life. That being said, pensions are a long-term investment and someone with relatively modest salary growth from working in a fulfilling job for longer would be likely to end up with more in their pension pot than someone who made quick moves up the career ladder but then felt the need to retire earlier. Our analysis found that someone who saw 5% salary growth but retired at 58 could end up with a pension pot of £176,000 adjusted for inflation, £34,000 less.

 Dean Butler, Managing Director for Retail Direct at Standard Life, part of Phoenix Group, commented: “Scrolling through #corporatelife, you’d think the office was all rooftop drinks, Matcha runs and oddly satisfying spreadsheets. Behind the viral posts, there’s a real conversation happening about how younger generations are adapting to the post-pandemic workplace as some employers reduce working from home, and how they are balancing career ambitions with a desire to prioritise personal health and wellbeing. It might be a long way off, but different approaches have the potential to impact Gen Z’s retirement savings, too.

 “Some people are fully ‘locked in’, focusing on the task at hand with ambition for quick salary growth and promotions. Others are putting emphasis on their life outside of work and perhaps avoiding management responsibilities or additional tasks. Neither approach is right or wrong and either could end up with a fulfilling career and a decent pension – it’s worth noting that if someone ‘locks in’ too hard now and burns themselves out by the age of 40, their long-term financial prospects will take a hit. However, choices made now can have a surprisingly significant impact further down the line. The ideal scenario must be to find a work/ life balance that works for you while keeping an eye on your financial future.”
   

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