Different attitudes between generations when it comes to funding retirement

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Different attitudes between generations when it comes to funding retirement

Lifetime news

Posted on: 05/02/2024

A third of ‘Gen Z’ – people born in or later than 1996 – believe property will be their main source of wealth in retirement.

That’s according to the latest research from according to research from life assurance, pensions and long-terms savings company Standard Life.

Their ‘Retirement Voice’ report revealed different attitudes between generations when it comes to funding retirement and later life.

While 35% of those Gen Z surveyed were leaning towards property as their key to funding life after work, 42% of baby boomers (people born between 1946 and 1964) favoured pensions as their go-to ‘after work pot’. Only 18% of the baby boomers said they were focussing on property as their fall-back fund.

Meanwhile, 36% of millennials (those people born between 1981 and 1996) also saw pensions as their main asset in retirement, rather than property (22 per cent).

And yet there are an alarming number of people ‘sleepwalking’ towards their retirement without adequate preparations and provisions.

Despite government regulation leading to workers being auto-enrolled into a workplace pension by their employer, many people are not saving enough to make their life after work both comfortable and enjoyable.

They do start to save more as their retirement date appears on the horizon, but have missed out on the opportunity, and need, to save over many more years.

The State Pension is unlikely to be enough to cover the deficit – and there is a growing expectation that the age where you can start accessing the State Pension will continue to rise.

Currently the UK pension age is 66, but that is set to go to 67 between May 2026 and March 2028. From 2044 it is expected to rise to 68 and perhaps even beyond.

Funding your later life, and ensuring that you have enough money to fully enjoy your retirement, is extremely important, not only for your lifestyle but also your wellbeing and mental health.

If you are unsure of how much you will need when you finish work then why not book a chat with a Lifetime coach, who can show you exactly where you are now in terms of your finances, and also demonstrate different scenarios and options that are available to you? Click here: https://outlook.office365.com/owa/calendar/[email protected]/bookings/


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