A poll of 2,000 working adults found Gen Z have ambitious retirement plans but 33% have no idea how much they contribute to their pension pot each month
Gen Z are convinced their golden years will be jam-packed with globe-trotting adventures, snapping up that dream holiday pad and perhaps even penning their memoir. New research involving 2,000 working adults has revealed that 27% of Gen Z are keen to pump their pension funds into memorable experiences rather than material goods, whilst 16% fantasise about relocating overseas.
A third are plotting to master brand new hobbies during retirement, such as pottery classes, with 22% hoping to transform these newfound passions into profitable side hustles. Meanwhile, 22% picture themselves living it up on luxury cruise ships once they’ve finally hung up their boots.
But despite harbouring such grand aspirations for their later years, a staggering 33% haven’t got a clue how much they’re actually putting away into their pension fund monthly.
Helen McGinty, head of financial advice distribution at Skipton Building Society, which commissioned the research, said: “Too many are walking blindly into the future. Gen Z need to wake up to the reality that those dreams won’t happen without planned and considered action.”
She added: “The earlier you start planning, the more options and flexibility you’ll have later on. It’s also important to consider how best to spread your retirement pot across your lifetime, especially as health and lifestyle needs change.
“Small steps taken today can make a huge difference to how comfortably, and confidently, you’re able to live in the future.”
The study also revealed that Gen Z currently reckon they’ll be able to retire at 60 – the earliest expectation of all generations.
Millennials anticipate clocking off work at 62, while Gen X aspire to retire at 64. Baby Boomers, on the other hand, expect to cease working at 68.
For 57% of Gen Z, savings are projected to fund their retirement, and 35% envisage cashing in investments and shares to finance their golden years. While 21% foresee needing a small side hustle to afford everything they want to do.
It emerged that 25% of all those surveyed expect to spend more of their pension early in retirement. Six in 10 want to enjoy it as much as possible while they’re still fit and active, while 43% hope to pursue hobbies sooner rather than later.
And 33% simply believe they won’t need as much money as they get older.
Helen McGinty added: “Getting to grips with your options early allows you to make informed choices and avoid unpleasant surprises later on. When it comes to achieving your financial goals, there’s no one-size-fits-all.
“We offer free money advice to help you make the most of your savings. And for those looking to invest or maximise their pension, we also offer financial advice on the high street – giving you the confidence to plan for the future in a way that feels achievable and tailored to you.”