Generations redefining retirement

How does each generation imagine their ideal retirement?

For many of our respondents, the dream retirement is not so much about lying on a beach or hitting the golf course, but a sense of financial freedom.

• People in Northern Ireland were the most likely (49%) to say ‘time for personal interests and hobbies’ was their biggest retirement priority.
• 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 (aged 55+) were the most likely (69%) to answer ‘living stress-free without financial worries’, compared to 46% of 16-24-year-olds.
• 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

Whether we imagine ourselves travelling the world, helping out with grandchildren or learning new hobbies, it’s fair to say that 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?

While the prospect of a brolly-free retirement is an enticing prospect for sun seekers, there were different motivations across the generations. 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. 

• A ‘moderate retirement’ was the top answer in every region except Greater London, where ‘comfortable retirement’ scored highest (36% versus 34% for ‘moderate’). The North East recorded the highest percentage of people who expect a ‘minimum retirement’ (29%). 
• Gen Z appear to have higher hopes for their retirement. Just 15% of 16-24 year olds (and young millennials aged 25-34 year olds) believe they’ll have a ‘minimum retirement’, whereas this is the expectation for 27% of Gen X (45-54 year olds).
• 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

For millions of people, the cost of living crisis has made it difficult to balance essential daily spending with saving for the future. So understandably, when it comes to thinking about the ideal retirement, our survey found that money truly matters.

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 if our circumstances are less than perfect, there comes a time where it’s important to enjoy a well-earned rest from working life. 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 respondents said they expect to (or already have) given serious thought to their retirement plans – specifically between the ages of 16 to 24.

In contrast, our survey found that most people wait until retirement is edging closer before they start seriously planning (if they haven't already). 12% earmarked ages 55-59 for their retirement planning.

Putting a price on our retirement plans

However we intend on spending our retirement, we know for sure that it will take considerable financial resources to enjoy ‘the good life’ in our later years.

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 an average of £361,297, while women estimated they'll save £181,166.

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.