Millennials expect to retire at 59 but most haven’t saved enough

MILLENNIAL and Gen Z workers expect to retire at 59 with an annual income of almost £26,000 – but just one in five is on track to do that.

A study of 2,000 adults aged 20 to 40 found 61 per cent expect to have the same or better standard of living as their parents upon finishing work.

But while 52 per cent have financial goals, just 22 per cent expect to hit their target. Instead a third are occupied with saving for a house deposit while 28 per cent are building up a cash buffer for unexpected costs.

Others are putting money away for a wedding (12 per cent), starting a family (17) or for a holiday or car (24).

The study by saving app Moneybox also found 87 per cent are concerned about saving for retirement but half feel they cannot afford it. Only 35 per cent pay in to a workplace pension and 21 per cent save elsewhere, while 12 per cent invest in higher-risk options such as crypto-currencies.

Ben Stanway, co-founder of Moneybox, said: “Many young adults are beginning to realise how much they will need to save.

“The challenge they face is significant, especially when you consider the rising state pension age and the fact that many are currently using most of their income to fund their day-to-day lives. For many, there is little left.

“We need to change the perception that retirement is something you only need to think about in midlife.” Of those who have not considered their retirement income, just over a third do not know where to start, with 31 per cent saying the topic “scares” them. Millennials are said to have been born between 1980 and 1995 with Gen Z born between 1996 and early 2010s.