Seven in 10 of Gen Z and Millennials are anxious about their ability to retire comfortably, with 69 per cent expecting to work beyond the traditional retirement age, new research reveals.
Despite these worries, younger Brits envisage their retirement years fuelled by sustainable technology and eco-conscious communities, along with cutting-edge innovations like virtual reality and robotic helpers.
The AI-generated images depict how younger generations imagine their twilight years. According to the survey commissioned by Skipton Building Society found a quarter picture eco-friendly ocean-based communities and homes powered by green energy.
Many also visualised smart clothing with health-tracking capabilities and futuristic public parks with tech-enhanced relaxation areas.
While these visions are thrilling, the financial reality tells a different story. The study reveals that many younger adults are still not ready for their retirement years.
A third feel they are too young to worry about saving for retirement and a quarter claim they don’t earn enough to save for later life. The study found 34 per cent confessed they are concentrating on more immediate financial priorities.
On a positive note, the study highlighted 46 per cent of participants are already managing their workplace pensions, and 43 per cent have opened ISAs to save additional funds.
Encouragingly, 60 per cent of participants aim to increase their pension contributions within the next five years, hoping to benefit from increased income and compound interest.
Alex Sitaras, Head of Savings and Partnership Products at Skipton Building Society, stressed the importance of this early financial planning.
“While these visions are exciting, the reality is that preparing for retirement needs to start as early as possible. The sooner you begin saving and investing, the more options you’ll have to create the future you dream of.”
He added that even small contributions over time could accumulate significantly through long-term investments and compound interest.
The study suggests that bridging the gap between futuristic dreams and financial readiness means more people need to start talking about retirement planning early on a conversation that Skipton Building Society’s My Money Review service is willing to support.