More Generation Z workers aged 18-24 claim to be knowledgeable about pensions than other generations, but new research reveals they have little understanding of retirement savings.

More than a quarter, 27%, of Gen Z claimed high-levels of understanding of pensions terminology, the highest percentage among all surveyed.

But two-fifths, 39%, of the same age group mistakenly believe they are in a final salary pension, a product largely phased out before they entered the workplace.

Their confusion may stem from where they said they would be most likely to ask for advice about pensions and retirement planning: 30% of 18-to-24-year-olds said they would turn to social media, nearly four times the national average of 8%.

That reliance on social media for complex pension education may help explain both their self-reported confidence in understanding pensions and the misconceptions they appear to have around certain pension products.

Pension confusion isn’t confined to younger workers, according to the survey from Annuity Ready.

More than a quarter, 27%, of 45–54-year-olds, the younger members of Generation X who are the next generation approaching retirement, said they have no understanding “at all” of pension terminology.

When it came to specific pension terminology, those aged 65 and over understandably showed the most familiarity with pension products with 35% saying they knew exactly what annuities are, the highest rate among all generations and well above the national average of 25%.

More than a quarter, 27%, of respondents aged 65 and over said they do not ask anyone for advice about pensions, significantly above the average of 13%.

Sarah Lloyd, commercial director at Annuity Ready, said: “Education is such a fundamental part of pension preparedness, and the earlier we can help people get the information they need to start planning for retirement, the better.

“The misconceptions we're seeing highlight just how important accessible, accurate information is.”

• Primary research was conducted by OnePoll on behalf of Annuity Ready and surveyed 2,000 adults living in the UK between 3 and 5 May.