The younger generation will require a pension pot worth £1 million if they wish to fully retire.
According to research from Mazars, the proportion of 18 – 24-year-olds who predict that they’ll be working in their retirement is 50% compared to those who are close to, or already in, retirement. The data also indicated that a third of the younger generation predict that they’ll never be able to retire.
Currently, 1.2 million adults over the age of 65 are employed in the UK, meaning that approximately one in ten are ‘working retired’.
During the twelve months to October 2016, the working retired population grew by 3%. Using this growth to forecast how the figures might look in the future, in the year 2056, there will be around 3.9 million people still working during their retirement.
Commenting on the data was Liz Ritchie. The Partner at Mazars and head of Private Client Services highlighted the need for the younger generation to take an interest in their pension and obtain financial guidance.
“Millennials told us that 63 was their anticipated retirement age; a 24-year-old earning around £24,000 a year today would need £1miliion to fund their retirement and maintain their standard of living until they were 80 for men or 85 for women.
“However, changes to pension structure, the closure of final salary schemes and the erosion of tax benefits have had an effect on the public’s view of pensions which could impact on future generations.
“A million pounds is a realistic figure and at the same time will be very daunting. This makes it all the more important for millennials to seek professional financial advice and plan for their future so they can fulfil their life ambitions.”
