A new poll has revealed exactly how Gen Z plan to spend retirement, as many have ambitious plans to fund it.
Gen Z reckon their retirement will be spent travelling the world, snapping up a holiday home, and even writing a memoir. Research involving 2,000 working adults revealed that 27% of Gen Z prefer to invest their pensions in experiences rather than material possessions, whilst 16% aspire to relocate abroad in their later years.
A third plan to take up a completely new hobby during, such as pottery, with 22% hoping to transform that interest into an additional source of income. A further 22% picture their golden years packed with cruises. Yet, despite these ambitious plans for later life, 33% have no clue how much they currently pay into 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 study also revealed that Gen Z anticipates retiring at 60—the earliest retirement age amongst all generations surveyed.
Over half, intend to depend on their savings to finance their retirement, whilst 35% expect to liquidate 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 McGinty from Skipton Building Society 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.”
She continued: “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.”