Four in 10 adults (38%) have barely thought about retirement, despite growing evidence that insufficient planning is forcing people to delay leaving work, new research from Skipton Building Society has shown.
Skipton’s research, carried out among 2,000 working adults, found that ‘retirement denial’ spans generations, with 61% of Gen Z saying they haven’t seriously considered retirement and nearly one in five (17%) over-65s stating the same.
The findings follow a report by Standard Life which revealed that one in six retirees has returned or is considering returning to work.
Skipton said older generations also face a ‘reality gap’ with nearly one in seven (14%) of over-65s believing that less than a £100,000 would fund their dream retirement, despite 18% wanting to travel the world.
Skipton’s analysis found that even when combined with the State Pension, a £100,000 pension pot would only cover around four to five years of retirement for someone living at a moderate level, as defined by the Retirement Living Standards.
However, 39% of those aged 65 and over are worried about running out of money, despite 17% having no idea how much they currently contribute each month to their pension.
The average Gen-Z expect to need a much larger retirement fund, with over one in ten (11%) anticipating they will need between £1-1.09 million. However, 33% have no idea how much they currently contribute each month.
It also emerged 33% of all those polled simply believe they won’t need as much money as they get older, despite rising costs.
Helen McGinty, head of financial advice distribution at Skipton Building Society, said: “With many not knowing how much they’re contributing each month to their pension, yet worried about not having enough money, it’s time to wake up to the reality that those dreams won’t happen without planned and considered action.
“The earlier you start planning, the more options and flexibility you’ll have later on. It’s also important to think carefully about how your retirement savings will support you throughout your lifetime, especially as health and lifestyle needs change.”
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