New data shows that retirement savings, once considered a concern for older workers, are becoming a priority much earlier in careers.

At a time when conversations around “soft life,” side hustles, and economic survival dominate youth culture, a surprising trend is emerging beneath the surface. Young Nigerian workers are not only focused on today’s bills, but they are increasingly planning for life decades ahead.

According to the Pension Fund Operators Association of Nigeria (PenOp), over 70 percent of new Retirement Savings Accounts (RSAs) registered in the third quarter of 2025 were opened by individuals under the age of 40.

In total, 129,154 new RSAs were registered during Q3 2025, with younger Nigerians accounting for the overwhelming majority. Individuals below 40 years recorded 96,364 registrations, representing 74.61 percent of the total.

PenOp said the pattern reflects growing pension awareness among younger workers and strengthens the long-term outlook of the Contributory Pension Scheme (CPS), Nigeria’s primary retirement savings framework.

While younger workers surged into the system, participation declined sharply among older age groups. Workers aged 40 to 49 registered 24,542 accounts, representing 19 percent of total enrolment.

Beyond that bracket, new sign-ups dropped significantly.

PenOp noted that the trend suggests many Nigerians are now entering the pension system earlier in their working lives rather than waiting until mid-career or later. Early participation, the report emphasised, is crucial because it allows savings to grow over a longer period and improves retirement security.

“Enrolment declined sharply among those above 49, suggesting limited first-time participation at older ages,” the report stated. “This pattern reinforces the importance of early entry into the pension system and highlights why outreach efforts should remain focused on younger, economically active workers to expand overall coverage.”

The data also revealed a gradual shift in participation between men and women. Men accounted for 77,109 registrations, representing 59.7 percent, while women registered 52,045 accounts, or 40.3 percent of the total.

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Although men still dominate enrolment, female participation is rising steadily.

PenOp reported that women’s registration increased by 6.5 percent year-on-year, attributing the growth to targeted awareness campaigns, improved access to pension services, and greater female presence in the formal workforce.

This shift signals a broader change in economic participation patterns and suggests that retirement planning is no longer seen as a male-dominated responsibility.

Industry observers say easier digital registration processes and workplace enrolment initiatives are helping accelerate uptake among younger workers. Many employers now facilitate automatic pension registration, while mobile access to pension services has reduced barriers that once discouraged participation.

PenOp noted that these demographic patterns point to healthy progress in the adoption of the CPS, driven largely by youth engagement and improving gender inclusion.

However, sustaining the momentum will require continued effort.

“To sustain and deepen this growth, continued digital outreach, workplace partnerships, and targeted engagement with young workers and women will be essential,” the association said.

As Nigeria’s workforce evolves, the data suggests a generational shift in mindset. Instead of viewing retirement planning as a distant concern, many young workers are beginning to treat it as a core part of financial stability, even in an economy where immediate survival often takes priority.

Meiza Nigeria