Generations redefining retirement

How does each generation imagine their ideal retirement?

For most respondents, the dream retirement is not about beaches or playing golf. Instead, it is about financial freedom.

• People in Northern Ireland prioritise hobbies most. Nearly half (49%) want time for personal interests in retirement. 
• Newcastle residents were the most likely (56%) to cite ‘being active and keeping fit’.
• And people in Brighton were the most likely (23%) to answer ‘giving back to the community or mentoring’.
• Baby boomers (55+) most value a stress-free retirement. Most (69%) want to live without financial worries. Only 46% of young adults (16–24) feel the same way.
• Women were more likely than men – 65% versus 57% – to say they would value a stress-free retirement without money worries.

Retirement planning is essential in supporting financial stability in retirement. A Pension Annuity can provide you with a guaranteed income for the rest of your life, whereas Pension Drawdown allows you to access your funds whenever you like. Our pension pot tool can help you decide which retirement income might suit your needs best.

Relocating in retirement

People imagine different retirement paths. Some travel the world. Others help with grandchildren or start new hobbies. No two retirement plans are the same. You only live once, and for many people, retirement is an opportunity to explore pastures new.

19% told us that they plan to relocate in the UK when they retire and 17% want to move abroad, while 64% will stay put. It was Londoners who were the most keen to relocate in retirement, with 46% planning to leave the city.

Why do you wish to relocate in retirement?

Moving abroad for sun is enticing. Still, generations have different motivations for retirement. For 45% of younger millennials (25-34 year-olds), the number one priority is a new adventure. Meanwhile, 30% of baby boomers want to relocate so they can downsize.

But will these fantasies match up to the reality?

What type of retirement do you realistically think you’ll have?

Our retirement income calculator shows how much income you could get in retirement based on your age and the value of your pension savings.

By and large, the people we polled were modest about their retirement plans. 

• Every region chose a moderate retirement as the top answer. Only Greater London differed. There, most people (36%) want a comfortable retirement. In contrast, the North East had the highest number of people (29%) expecting a minimum retirement.
• Gen Z appear to have higher hopes for their retirement. Only 15% of young people aged 16 to 34 expect a minimum retirement. In contrast, 27% of Gen X adults aged 45 to 54 expect this outcome.
• Men are more likely than women (28% versus 20%) to believe they’ll have a ‘comfortable retirement’. Similarly, women are more likely than men to believe they will have a ‘minimum retirement’ (24% versus 17%).

When retirement meets reality

The cost of living crisis makes saving hard. Millions of people struggle to balance daily bills with future savings. 

Money truly matters for an ideal retirement. 

What are your biggest barriers to a perfect retirement?

Over the last few years, many Brits have tightened their belts against a backdrop of rising prices – from food to fuel costs. But has inflation influenced how we think about our future?

• Money was cited as the biggest barrier to retirement in each city we polled, reaching a high in Bristol (68%).
• Gen X were the most likely to believe that money is the biggest retirement barrier (69%) compared to just 41% of Gen Z.
• For younger people, some of their concerns about retirement are less tangible. A quarter (25%) of Gen Z respondents said they’re worried about boredom and a lack of purpose in retirement.

Is there a right time to retire?

Even in imperfect circumstances, you need a break. It is important to enjoy your well-earned rest from work. But when should you start planning it?

For many young people, there's no time like the present. Almost a quarter (23%) of Gen Z said they expect to (or already have) given serious thought about retirement. They tend to start planning between ages 16 and 24.

Our survey found that most people wait to plan for retirement. They only start seriously planning as the date edges closer. 11% earmarked ages 55-59 for their retirement planning.

Putting a price on our retirement plans

Retirement takes significant money. You need substantial savings to enjoy your later years. Living costs keep rising over time. Housing, food, and bills demand a large budget.

How much do you think you’ll have saved by the time you retire?

According to our survey, the mean amount that people expect to save for retirement is £276,514. But there was a gap in the responses by gender - men expect to save £361,297 for retirement. Women estimate they will save £181,166.

Generational targets also differ. Millennials aim to save £345,000. Gen Z is more cautious, aiming for £258,000.

Are you retirement ready?

If retirement is a few years down the road, it might be a good idea to think about how much you should put in your pension. Even putting aside a modest amount each month can provide additional financial security as you grow older. But planning for something that’s decades away can be overwhelming. Over a fifth (22%) of Gen Z respondents told us their lack of knowledge is a barrier in preparing for retirement.

If you’re approaching retirement, try our retirement income calculator to get an idea of how much your pension pot could get you. And our pension pot tool will guide you through some key questions to think about when it comes to accessing your retirement savings.

Research was carried out by Censuswide from 30 Oct – 01 Nov 2024.