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.
What type of retirement do you realistically think you’ll have?
| Moderate retirement (basic needs covered, with some money left over for non-essentials) | 39% |
| Comfortable retirement (more financial freedom and can afford some luxuries) | 24% |
| Minimum retirement (basic needs covered, and some money left over for non-essentials) | 21% |
| Unsure | 11% |
| None of the above | 6% |
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.
What does ‘the perfect retirement’ mean to you?
| Living stress-free without financial worries | 61% |
| Being active and keeping fit | 51% |
| Freedom to travel and explore new places | 45% |
| Time for personal interests and hobbies | 43% |
| Surrounded by family and friends | 39% |
| Giving back to the community or mentoring | 16% |
| Working on home renovations | 8% |
| No preference | 7% |
| Unsure/Other | 6% |
Our survey also found that money is the biggest barrier to achieving a dream retirement for 55% of UK adults. Followed by potential health related issues (37%), fears of boredom and a lack of purpose (16%) also limiting retirement planning.
Whilst 12% of UK adults admit to having a lack of knowledge around preparation for retirement. This was most common among 16-24-year-olds, with 22% citing it as a key barrier. Those aged 25-34 also find lack of knowledge a barrier to retirement (21%), which contrasts to just 6% of adults 55+.
Relocating in retirement
Over a third (36%) of UK adults express a desire to relocate in retirement, with 17% stating they plan to move to a different country. The desire to relocate was strongest among younger adults – with 61% of 16-24 year olds and 55% of 25-34 year olds planning to relocate. However, only 17% of over 55s stated relocation as an option.
Unsurprisingly, disappointing British weather is a key motivator for Brits looking to relocate. Among the 36% of UK adults planning to relocate in retirement, 39% said they would be doing so for a change of weather and scenery. Other reasons include new experiences and adventures (35%) or realising a lifelong dream of always wanting to move there (26%).
Lorna Shah, Managing Director, Legal & General Retail Retirement:
“The dream of relocating or travelling in retirement is a popular choice among retirees, but it requires careful financial planning to become a reality.”
“At Legal & General, we have a variety of tools to help you prepare for your retirement, such as our Retirement Income Calculator to help keep your retirement plans on track.”
1 Legal & General commissioned this survey by Censuswide on 2,008 General consumers in the UK aged 16+ (nationally representative) between 30/10/2024 and 01/11/2024.
