By Lauren Howells.
People aged under 32 years old plan to retire the earliest, despite being significantly less likely to have a pension plan in place than older age groups, according to new research.
A third of Britons below 32 hope to retire early
A survey of more than 1,000 people, carried out by independent financial advisor Navigate Wealth, asked different generations about their retirement plans. A third (33.3%) of respondents born after 1986, who were part of either the Millennial generation or Generation Z, said that they hoped to retire between the ages of 61 and 65, compared to 31% of those born in or before 1985.
However, the research revealed that those aged under 32 were significantly less likely to have a pension plan in place than older age groups, with 55% of Generation Z and the Millennial generation saying that they did not currently pay into a pension, compared to 41% of the participants over the age of 32.
Only 25% of under 32s putting money aside
Only a quarter (25%) of those under 32 years old said that they were putting money into savings after they had paid their bills and rent each month.
However, when Millennials were removed from the data, 51% of Generation Z respondents said that they were saving money from their pay packet.
Richard Bamforth, Chartered Financial Planner at Navigate Wealth, said:
“What is clear from our data is that the younger you are, the more optimistic you are likely to be regarding the age at which you plan to retire.
“Those aged below 32 are most likely to plan to retire between the age of 61-65, compared to those aged between 54-72 (Baby Boomers), who are most likely to plan to retire between the age of 66-70.”
Not saving now could result in a change of plans
The survey showed that many of the younger generations had not yet started to save for their retirement, Mr. Bamforth added, which could ultimately result in their plans to retire at a younger age falling through.
The State Pension age is due to increase to 68 years old between 2037 and 2039.
Navigate Wealth is calling for more education for younger people about the need to start saving early – or at a minimum be more realistic when planning for retirement.