A recent survey by Legal & General has unveiled significant generational disparities in retirement aspirations among UK adults, underscoring the importance of proactive financial planning across all age groups.

Relocation aspirations vary by age

The survey indicates that over a third (36%) of UK adults intend to relocate upon retirement, with the UK’s unpredictable weather being a primary motivator. Notably, 61% of Gen Z respondents (aged 16–24) express a desire to move in retirement, a stark contrast to just 17% of Baby Boomers (aged 55 and above). This trend suggests younger generations are more inclined towards seeking new experiences and environments in their later years.

Financial expectations and preparedness

Financial goals for retirement also differ markedly between age groups. Older Millennials (aged 35–44) anticipate saving an average of £346,000 for retirement, while Gen Z aims for a more modest £259,000. Despite these intentions, several barriers hinder effective retirement planning:

• Financial concerns. 55% of respondents are apprehensive about their financial readiness for retirement.
• Health issues. 37% worry about potential health problems impacting their retirement plans.
• Fear of boredom. 16% express concern about lacking purpose or activities in retirement.
• Lack of knowledge. 22% of 16–24-year-olds feel unprepared due to insufficient understanding of retirement planning.

These findings highlight a pressing need for enhanced financial education and resources, particularly for younger individuals embarking on their careers.

Retirement timing and savings expectations

The research reveals that those aged 55 and above plan to retire between 65 and 69, aligning with the current state pension age of 66. This suggests a realistic outlook on the financial demands of retirement within this demographic.

While 35-44-year-olds have the highest retirement savings expectations (£345,946), this figure falls short of the Pensions and Lifetime Savings Association’s (PLSA) “comfortable” retirement benchmark of £397,500 for singles. Conversely, those aged 55 and above expect to save £256,836, slightly below the PLSA’s “moderate” retirement recommendation of £277,500. These discrepancies underscore the necessity for improved retirement planning guidance across all age groups.

Perceptions of retirement lifestyles

The survey sheds light on individuals’ expectations regarding their retirement lifestyle:

• Moderate retirement. 39% believe they will achieve a lifestyle where basic needs are met with some funds remaining for non-essential items.
• Comfortable retirement. 24% anticipate having greater financial freedom, allowing for certain luxuries.

Interestingly, younger respondents (16–24) are the least optimistic, with only 31% expecting a moderate retirement. In contrast, 41% of those aged 55 and above foresee a moderate retirement, and 22% anticipate a comfortable one.

Defining the “perfect retirement”

When envisioning the ideal retirement, respondents prioritised:

• Living stress-free without financial worries. 61%, with the highest emphasis among those aged 55 and above (69%).
• Maintaining an active lifestyle. 51%.
• Freedom to travel and explore new places. 45%.

These preferences highlight a universal desire for financial security, health, and the opportunity for new experiences during retirement.

Barriers to achieving the ideal retirement

Financial constraints emerge as the most significant obstacle, with 55% of UK adults citing money as a barrier to their dream retirement. Other concerns include potential health issues (37%) and fears of boredom or a lack of purpose (16%). Notably, 12% of UK adults admit to lacking knowledge about retirement preparation, a sentiment most prevalent among 16–24-year-olds (22%) and 25–34-year-olds (21%), compared to just 6% of those aged 55 and above.

Motivations for relocating in retirement

Among the 36% of UK adults planning to relocate in retirement, the primary reasons include:

• Desire for better weather and scenery: 39%
• Seeking new experiences and adventures: 35%
• Fulfilling a lifelong dream of moving abroad: 26%

These motivations are particularly strong among younger adults, with 61% of 16–24-year-olds and 55% of 25–34-year-olds planning to relocate, compared to only 17% of those over 55.

Financial planning is key to achieving retirement goals

Lorna Shah, managing director at Legal & General Retail Retirement, emphasises the importance of careful financial planning to realise retirement dreams: “The aspiration to relocate or travel during retirement is common among many, but turning this into reality requires meticulous financial preparation.”

Legal & General offers various tools to assist individuals in planning for retirement, including their Retirement Income Calculator, designed to help keep retirement plans on track.