Gen Z has earned a reputation as a generation of entrepreneurs. Nearly half (45%) of those born between 1997 and 2012 already have a side hustle, while more than a third (37%) juggle more than one, according to research by Visa.
To boost their income, young people are turning to e-commerce, social media and passion projects in their droves – and many are making a success of it. I am part of Gen Z myself. While I don’t currently have a side hustle, conversations with friends and peers often turn to potential ventures or those already set up by acquaintances.
Against a backdrop of rising rents, house prices, a stubborn cost-of-living crisis and hefty student loans, it is no surprise that this generation has embraced innovative ways to earn more cash. Their ambition is clear: Sage research shows 92% of under-34s intend to turn their side hustles into full-time businesses.
The extra money from side hustles could give young people headroom to increase their contributions
This resilience in the face of tough conditions should be applauded. Gen Z are not just improving their lives today – their resourcefulness could also help them build lifelong financial habits. Goal-oriented and financially focused, they are well positioned to create savings that could set them up for a prosperous future.
One of the most efficient ways to do this is through pensions. The extra money from side hustles could give young people headroom to increase their contributions – either by paying into a personal pension directly or by using their side income for everyday costs, freeing up more of their salary to go into a workplace pension.
The challenge is persuading young people to prioritise the long term when the present already feels difficult. Speaking personally, I delayed upping my pension contributions for years, instead saving for driving lessons, a first home and covering rising living costs.
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Pensions also suffer from an image problem. On social media, ‘finfluencers’ often focus on investing for quick returns, while pensions – tax-efficient, long-term and slower to reward – struggle to compete for attention. It’s no surprise that nearly half (48%) of Gen Z say they struggle to save into a pension, according to Phoenix Group.
So, how can we engage this generation with retirement saving? Gen Z are digital natives, used to apps that are simple, intuitive and rewarding. The pensions dashboard, expected to go live for most schemes in 2026, could provide just that.
Imagine if it included prompts asking savers whether they have a side hustle – and if so, suggesting they put a percentage of that income towards their pension. Call it “penny saving for pensions”.
The bigger question is whether Gen Z will continue their side hustles as they grow older, wealthier and busier. If the trend sticks, retirement itself could be reshaped: less a fixed destination and more a gradual shift from full-time work into part-time passion projects.
On social media, ‘finfluencers’ often focus on investing for quick returns, while pensions struggle to compete for attention
This evolution could be a golden opportunity to reframe how we talk about pensions. If Gen Z’s entrepreneurial energy is channelled into saving early, their side hustles could be the foundation of a more flexible and financially secure retirement.
Visa research shows young entrepreneurs already earn an average of £218.60 a month from their extra work. Despite the challenges they face, their determination to earn more – and save more – could ultimately set them up for long-term prosperity.
Alexander Anderson is a marketing executive at Dunstan Thomas
