Clare Moffat, Pensions Expert at Royal London, comments on when workers under 35 expect to be able to retire.

Despite many workers starting to save earlier as a result of auto enrolment, future generations have a mismatch between expectations and reality as far as the timing of their retirement and the amount of savings they require. New research from mutual, Royal London, carried out with 4,000 adults in the UK, shows two-fifths of younger adults plan to retire by age 60.

An early retirement needs to factor in the amount of savings required to fund a much longer retirement, yet seven in ten (73%) under 35s admit they haven’t worked out how much they will need to live on when they retire.

Royal London’s research found that, on average, those under 35 years of age predict they will need £1,086 per month in retirement – an amount that would provide a minimum standard of living and would be mostly covered by the State Pension, which is currently £886 a month.

Clare Moffat, Pensions Expert at Royal London, commented:

Being so far away from retirement, the younger generation have an optimistic view of when they’ll be able to give up work but there is a significant gap between expectations and retirement reality. Two-fifths of younger adults do not plan to work beyond 60 years of age, even though they won't qualify for a State Pension until much later, and that poses serious questions about how they will fund the type of lifestyle they want to enjoy when they’re older.

While the thought of early retirement may be appealing, it also comes with a note of caution as it can carry significant risk. The more of your pension pot you take earlier in your retirement, the less there’s left to maintain lifestyle in later years.

Full release: Out of touch with retirement reality: Two fifths of younger adults expect to be retired by 60

✉️ Neil Cameron, Royal London, 07919 171969 / neil.cameron@royallondon.com