Under 35s aiming to retire before they reach 60
ALMOST half of investors aged under 35 think they will be able to retire before they reach their 60s, according to new research.
A survey from investment management company Rathbone Investment Management highlighted a generational divide amongst retirement savers.
While only four per cent of under-35s believe they will work past their 70th birthday, 14 per cent of those over 55 years old said they would be.
And 68 per cent of under-35s are not yet saving for retirement at all while 68 per cent of over-55s are doing so.
“It’s concerning that despite a lack of savings half of millennials are expecting to retire early,” said Robert Szechenyi, investment director at Rathbones.
Read more: ‘Generation Snowflake’ really doe care about retirement
“Whilst the talk of an inter-generational wealth transfer from the baby boomers to younger generations might be quelling concerns over whether this generation will have enough to live comfortably in retirement, it should in no way be relied upon.”
The report also highlighted a lack of wage growth amidst rising inflation and low interest rates that means millennials could be facing a savings shortfall.
Read more: Households confident of rosy retirement income
However, younger generations could be expecting to use their inheritances to alleviate this shortfall in their retirement.
“Whether you are a millennial, Generation X or nearing retirement age you should be seriously considering how much you need to save in order to make the most of your retirement,” said Szechenyi.
“If you are planning to retire before or at 60 then this could mean you need to fund yourself for 30 or more years.
“It’s great news that so many are optimistic about their retirement, but they must make sure that the age they hope to retire at is realistic.”
Read more: Third of adults failing to invest for retirement
