Adults in the UK believe they need an average after-tax household income of £42,456 a year to retire comfortably and feel financially secure, new research shows.
A survey of 2,078 adults, carried out by YouGov on behalf of wealth management firm Mattioli Wood, found that 18 to 24-year-olds think they need net earnings of £55,272 a year to be financially secure in retirement, compared with £36,252 for those aged 55 and over.
Expectations varied not just by age but region, with Londoners having the highest retirement income outlook at £53,292 a year, compared with £32,232 in the north-east.
Most respondents expected to retire at 65, although this varied slightly across regions, with those in the south-east and south-west anticipate retiring at 67, while Londoners expect to retire as early as 64.
Amit Joshi, managing director of wealth at Mattioli Woods, said: “Our research highlights the very different expectations people have about the income they will need to feel financially secure in retirement.
“While the average figure stands at more than £42,000 a year after tax, the substantial differences between age groups and regions show that retirement means different things to different people.
“There is no one-size-fits-all retirement income target. The amount someone needs will depend on their circumstances, financial commitments and the lifestyle they hope to enjoy. Understanding those individual needs is key to building a realistic picture of what financial security in later life could look like.
“With more than a quarter of people concerned about running out of money in retirement, it is important to look beyond a headline figure and consider how income, savings and wider financial plans can support the retirement someone wants.”
