Brits set their sights on affording comfortable retirement
British adults have set their sights on affording a luxury retirement, but rising costs have soured some saver’s hopes.
Nearly 8m Brits have made securing a comfortable retirement their main financial priority, according to research from consumer banking business Chase.
A comfortable retirement allows more financial freedom and luxuries, such as holidays and greater non-essential spending.
In efforts to secure their dream retirement, UK adults are aiming to save £13,811 each year, on top of a state pension.
Nearly 70 per cent of the 3,000 people polled, expressed confidence that they could achieve this goal.
This total rose to 77 per cent, when asked if they also felt positive they would be able to retire early.
Kuba Fast, UK chief executive of Chase, said, “Given the unpredictability of recent years, as a nation we’ve started to focus more on the smaller joys in life.
“However, when considering our long term goals, a comfortable retirement remains a top priority for many.”
Generational wish for luxury retirement
While saving for retirement is typically viewed as a focus for savers aged 60 and above, younger generations are also choosing to prioritise it.
Nearly 20 per cent of gen X have shifted their focus towards securing a comfortable retirement, over paying off their mortgage and retiring early, while 8 per cent of millennials also see reaching their retirement goals as a priority.
In contrast, gen z remains focused on short term goals, including getting on the property ladder.
Other priorities for young adults included starting a business and pursuing further education.
Inflation woes and gender pay gap
However, not all savers are confident they can reach their retirement goals, with 57 per cent citing inflation and rising costs as significant barriers.
Three in five millennials and two thirds of gen x believe their saving goals have been stifled by these factors.
There was also a notable gender difference in saver’s confidence.
Nearly 80 per cent of men believed they could reach their goal, in comparison to just 69 per cent of women, as they reported that inflation and rising day-to-day costs had a greater impact on their finances.
The gender gap was highlighted by men saving more each month, setting aside of average of £572 compared to £401 for women, according to Chase.