A new generation is redefining retirement, but a worrying gap exists between their grand ambitions and their financial planning. Research commissioned by Skipton Building Society reveals that while Generation Z has vivid dreams for their later years, many are navigating their future without a clear financial roadmap.
Global Adventures and New Chapters
The poll of 2,000 working adults, conducted by OnePoll, paints a picture of a generation that sees retirement as an active, experience-rich phase of life. Twenty-seven per cent of Gen Z stated they want to invest their pensions into experiences rather than possessions. Their aspirations are distinctly adventurous: travelling the world, buying a holiday home, and even writing a memoir feature prominently.
Further ambitions include a third planning to take up a brand-new hobby like pottery, with 22% hoping to monetise that passion. The classic retirement cruise also remains popular, with 22% imagining their golden years filled with voyages. For 16%, the dream involves a permanent move abroad.
The Stark Reality Check
Despite these detailed visions, the research uncovered a significant planning deficit. A third (33%) of Gen Z admit they have no idea how much they contribute to their pension each month. This lack of awareness exists alongside a deep emotional investment in their dreams; 61% say they would be devastated if they couldn't achieve their ideal retirement.
Helen McGinty, head of financial advice distribution at Skipton Building Society, commented: "Young people clearly have big dreams for retirement - from travelling the globe to starting entirely new chapters of their lives. But right now, too many are walking blindly into the future."
She stressed the need for action: "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."
Funding the Future and Seeking Advice
The study also highlighted how this generation expects to fund their lifestyle. Gen Z currently believes they will retire at 60, the earliest expectation of all generations, compared to 62 for Millennials and 68 for Baby Boomers.
Their anticipated income sources are diverse:
- 57% expect savings to fund their retirement.
- 35% imagine cashing in investments and shares.
- 21% anticipate needing a small side hustle.
When seeking guidance, traditional and modern methods mix. While 26% have spoken to their parents about retirement planning, 15% have turned to AI tools like ChatGPT for information. A quarter of all respondents expect to spend more of their pension early in retirement to enjoy life while fit and active.
McGinty added a crucial warning about longevity: "Understanding how long your retirement might last, and how your money will need to stretch across that time, is crucial. Without a clear picture, it’s easy to underestimate how much you’ll actually need." She emphasised the value of personalised advice, noting that "what works for someone else might be completely wrong for you."
The message from the data is clear: the ambitious retirement dreams of Generation Z are within reach, but they must be underpinned by informed, early, and consistent financial planning to avoid future disappointment.
