A recent report has highlighted some surprising contradictions in how people think about retirement.
Participants were asked two key questions:
- At what age would you like to retire?
- At what age do you think you’ll actually be able to retire?
If your answers to these differ, you’re not alone. On average, respondents said they’d like to retire at 62.3 but expect to retire at 67.0, a gap of nearly five years. For baby boomers (those closest to retirement), the difference was just 0.9 years, while millennials (born early 1980s to late 1990s) reported the widest gap at 6 years.
Interestingly, Generation Z (born 1997–2012) had both the earliest desired retirement age at 60.1, and the earliest expected retirement age at 65.0. But that optimism may be misplaced. Gen Z won’t reach the current State Pension Age (SPA) of 66 until 2063. With the SPA set to rise to 67 by 2028, and a government review underway to move it to 68 (currently scheduled for 2046–48), it’s possible that some Gen Z individuals may not receive their state pension until age 70.
Further complicating matters, over 50% of employed 18–34-year-olds agreed with the statement: “I expect to have to work beyond my State Pension Age.”
One explanation for these conflicting views may lie in Gen Z’s scepticism about the future of the state pension. 45% of Gen Z respondents said they don’t believe the state pension will be available to everyone by the time they reach retirement age.
This inconsistency isn’t unique to Gen Z. If you’re unsure how your own retirement plans stack up, seeking professional financial advice can help bring clarity.
Important reminders for investors:
- Investing in shares should be considered a long-term strategy and aligned with your personal risk tolerance and financial goals.
- The value of investments and income from them can go down as well as up, and you may not get back the amount originally invested.
- While ISAs offer tax advantages, they may still incur unrecoverable tax on income received by ISA managers.
- Stocks and Shares ISAs typically invest in assets that fluctuate in value.
- Tax treatment depends on individual circumstances and may change.
- The Financial Conduct Authority does not regulate tax advice.
14th November 2025
