Gen Z reckon their retirement will be spent travelling the world, snapping up a holiday home, and even writing a memoir. A poll of 2,000 working adults found that 27% of Gen Z want to invest their pensions in experiences rather than possessions, while 16% dream of moving abroad later in life.
One in three plan to take up a brand-new hobby in retirement, such as pottery, and 22% hope to turn that passion into an extra income stream. Another 22% imagine their golden years will be filled with cruises once they finally down tools. However, despite these big ambitions for later life, 33% have no idea how much they currently contribute to their pension pot each month.
Helen McGinty, head of financial advice distribution at Skipton Building Society, which commissioned the research, said: “Right now, 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.”
“The earlier you start planning, the more options and flexibility you’ll have later on,” she added. “Small steps taken today can make a huge difference to how comfortably, and confidently, you’re able to live in the future.”
The research also found that Gen Z expects to retire at age 60, the youngest retirement age of any generation surveyed.
More than half (57%) plan to rely on their savings to fund their retirement, while 35% expect to cash in investments and shares. Additionally, 21% think they will need a small side hustle to afford everything they want to do in later life.
When it comes to seeking advice, 26% of Gen Z have spoken to their parents about retirement planning. However, 15% have turned to AI tools such as ChatGPT to learn more, according to the research carried out by OnePoll.
Overall, 25% of all those polled expect to spend more of their pension early in retirement, And 33% simply believe they won’t need as much money as they get older.
Helen added: “Without a clear picture, it’s easy to underestimate how much you’ll actually need to fund the lifestyle you’re imagining.
“Getting to grips with your options early allows you to make informed choices and avoid unpleasant surprises later on.”
“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.”