United Kingdom

Millennials fear they may never be able to retire

May 2017

 

Millennials fear they may never earn enough to retire completely, after research found that those currently earning £24,000 a year would need £1million to fund their retirement and maintain their standard of living.

The research, carried out by OnePoll on behalf of international accountancy firm Mazars, polled over 2,000 UK adults and found that nearly one third of millennials - those born between 1982 and 2000 – believed they would never be able to give up work completely.

Mazars predict that by 2040, there could be two million 'working retired', whilst by 2056 there could be four million over 65s in the workplace.

According to the firm's research data, millennials indicated that 63 was their 'anticipated' retirement age, despite fears that those earning £24,000 today would require £1million to retire at 80 for men and 85 for women.

Sarah Hamilton, senior pensions consultant at Aon Employee Benefits said: "The thought of needing to save £1million for retirement will be daunting to most. We need to educate individuals, at an early age, of the need to start saving as soon as possible if they are to have any hope of a comfortable retirement."

Mazar further warned that if the ageing workforce continued to increase at the current rate, the total figure needed to retire could be 'much higher' and there could be a generation who may never be able to retire.

Currently, the UK employs around 1.2 million adults who are 65 and over, but government figures suggest that with UK population of over 65s likely to rise by almost a half to 18 million by 2039, 1.8 million of over 65s would still be in the workforce in the next two decades.

Commenting on the research, Liz Ritchie Partner at Mazars and Head of Private Client Services said: "Those thinking they can simply work longer may find themselves unable to and as a result, with a gap in their finances. We all hope our later years will be a time to slow down, relax and enjoy life. To achieve this, we have to make long-term financial planning a priority. This is not just among those newly entering the workforce but also across all ages. It is never too late to help make your finances in later years that bit more comfortable."

Hamilton added: "Individuals need to take a step back and consider their retirement plans; are they realistic? Is there a contingency plan if things don't go as expected? This can be difficult when there are so many future unknowns so it needs to be regularly kept under review to ensure they stay on track, as their future changes."

 

 

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