20-40 year-olds want to retire at 59

A typical young adult aged 20-40 wants to retire at 59 with an annual retirement income of £26,000, according to new research. More than six out of 10 (61%) expected to enjoy the same or better standard of living as their parents. However, only 11% know that they are receiving maximum employer contributions to their workplace pension and many with old workplace pensions do not know how much is in them. Only 11% are contributing to a personal pension. Research for personal finance app Moneybox - published to coincide with Pension Awareness Life this week - found that 87% were concerned about saving for their retirement and 37% "extremely so." Of the 2,000 young adults surveyed 52% had already considered the annual income they would like to have when they retire, including 18% who said they had given it a “lot of thought.” The most common motivations for considering their retirement income were: Concern about their standard of living post-retirement (42%)Wanting to be able to retire comfortably as soon as possible (40%)Growing concern about not being able to retire when they hope to (38%)The Covid pandemic making them more conscious of the need to plan for the future (33%)While 75% of young adults surveyed said that they have already taken some steps to save and invest for their futures, only 41% said they were currently contributing to a workplace pension and only 11% to a personal pension. Among those who have not given any thought to their target income in retirement (42%), 44% said this was because it “feels impossible” to know how much they will need, almost a third (31%) were too scared and overwhelmed to think about it and 19% admitted that it had simply never occurred to them to do so.

20-40 year-olds want to retire at 59

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