Gen Z and millennials expect to retire at 59 with an annual income of nearly £26,000 – but just one in five is on track to meet their target, according to research. A study of 2,000 adults aged 20-40 found 61 percent expect to have the same – or better – standard of living as their parents when they retire.
But while 52 percent have set financial goals to keep them focused on saving for the future, just 22 percent are expecting to hit their target.
Many young adults are beginning to realise how much they will need to save to be able to enjoy a comfortable retirement
Instead, a third (33 percent) are focused on saving for a house deposit, while 28 percent are building a cash buffer for unexpected expenses.
Others are putting their spare cash towards a wedding (12 percent), starting a family (17 percent) or a one-off event such as a holiday or new car (24 percent).
The study, by saving and investing app Moneybox, also found 87 percent are concerned about saving for their retirement, but 49 percent feel they can’t afford to at the moment.
As a result, only 35 percent are contributing to a workplace pension, with just 11 percent maxing out their payments – and only 21 percent are saving outside such a scheme.
Meanwhile 12 percent have chosen to invest in “higher risk” trading options such as crypto.
Ben Stanway, co-founder of Moneybox, said: “It is clear from our research that many young adults are beginning to realise how much they will need to save to be able to enjoy a comfortable retirement.
“The challenge they face is significant, especially when you consider changing external factors such as the rising state pension age and the fact that many are currently using most of their income to fund their day to day lives and to save for shorter-term goals, such as buying a house, getting married or starting a family.
“For many, there is little left to go towards something like their retirement.
“While at times it can be difficult to see past our more immediate financial needs and goals, we hope to help everyone get on the right track towards securing a retirement they can look forward to.
“To do this, we need to change the. “Brinkwire Summary News”.