Many UK adults are underprepared for retirement, which is raising the risk of longer working lives, according to research from Skipton Building Society.
A survey of 2,000 working adults found that 38% have given little or no thought to retirement planning. This highest among younger workers, with more than six in 10 Gen Z respondents saying they have not seriously considered retirement, while 17% of those aged 65 and over said the same.
Meanwhile, among over-65s, nearly one in seven believe less than £100,000 would fund their retirement, despite many planning for activities such as travel.
Skipton says that, even when combined with the state pension, a £100,000 pot would only support around four to five years of moderate retirement living.
Additionally, around 17 per cent of over-65s and a third of Gen Z respondents said they do not know how much they contribute each month, while 39 per cent of older respondents are concerned about running out of money.
Younger workers tend to expect higher retirement savings, with more than one in 10 Gen Z respondents anticipating needing over £1m. But a third of all respondents believe they will need less money in later life, despite ongoing cost pressures.
Skipton Building Society head of financial advice distribution Helen McGinty says: “With many not knowing how much they’re contributing each month to their pension, yet worried about not having enough money, it’s time to wake up to the reality that those dreams won’t happen without planned and considered action.
“The earlier you start planning, the more options and flexibility you’ll have later on. It’s also important to think carefully about how your retirement savings will support you throughout your lifetime, especially as health and lifestyle needs change. Having a trusted place to turn for guidance can make all the difference — and at Skipton, members can access free money guidance alongside regulated financial advice to help them take small, informed steps today that shape a more confident future.”