Legal & General survey reveals men expect to have almost double the amount of retirement savings than women
New research from Legal & General uncovers multigenerational differences across retirement hopes and dreams. Findings reveal that those aged 55+ expect to retire between 65-69, reflecting a realistic view that aligns with the current state pension age of 66. This suggests they have a clear understanding of the financial challenges that come with retirement.
Generational differences in retirement saving expectations Whilst our survey found that 35-44 year-olds have the highest retirement savings expectations (£345,946), it falls slightly short of the Pensions and Lifetime Savings Association’s (PLSA) Retirement Living Standards comfortable retirement benchmark of £397,500 for singles. Meanwhile, those aged 55+ expect £256,836, slightly below the PLSA’s moderate retirement recommendation of £277,500.
These findings highlight the need for better retirement planning guidance across all ages. More than a third of Brits (39%) believe they will be able to have a moderate retirement with some money left over for non-essentials, whilst less than a quarter of adults (24%) believe they can have a comfortable retirement with more financial freedom and some luxuries.
The survey highlights notable generational differences in retirement expectations, with younger respondents aged 16-24 being the least optimistic, with only 31% expecting a moderate retirement where basic needs are covered with some extra funds for non-essentials. In contrast, older age groups, mainly those aged 55+, were more likely to anticipate a moderate (41%) or comfortable (22%) retirement.
The ‘Perfect Retirement’
For many, a dream retirement provides a sense of financial freedom. Legal & General’s recent Happiness in Retirement research revealed that the happiest retirees have an average monthly income of £1,700. To achieve this at 67, they’ll need to have a pension pot of £222,000 and be eligible for the full state pension. When asking different generations what a ‘perfect retirement’ would look like, 61% of respondents said it would mean living stress-free without financial worries. This was highest amongst the 55+ age group (69%). Keeping fit (51%) and the freedom to travel (45%) were also cited as activities that would contribute to an ideal retirement.