Why 39% of Workers Aren’t Seeing Retirement as a Real Option
Rising living costs are making the dream of a stress‑free retirement feel more like a distant fantasy. Two‑fifths of full‑time employees (39%) now admit they’ll never be able to afford to stop working, up from one in three (33%) a year earlier.
The Age Group That’s Feeling the Heat
- 35‑44 year olds are the most anxious — 46% of them think they’ll never afford to retire.
What “Best Age” really means
Retiring at 55 might sound nice if you’re a travel junkie, but it’s only a sweet spot if you’ve laid out a solid plan. Without planning, that number could be a moving target.
How the Numbers Stack Up
- Almost a third (32%) want to delay retirement because costs are creeping up.
- Eight in ten (81%) worry about a tight retirement budget, and the same 81% fear they’ll need to keep working longer.”
Facing Workplace Support — or the Lack of It
- Only 41% feel their employer helps them understand their finances.
- More than half (54%) would turn to family or friends for pension advice.
- Only 14% would actually talk to their boss about the topic.
Insights From WEALTH At Work
Jonathan Watts‑Lay, Director at WEALTH At Work, explains that the 35‑44 group hasn’t benefited from automatic enrollment and misses out on generous defined benefit pensions that older generations enjoy.
He stresses that small savings tweaks can be game‑changing. For example, a 1% increase in pension contribution during your twenties can boost future savings by a quarter. Think of it as a tiny extra seat on a long flight—literally a lot of miles earned.
How to Get Your Finances in Shape Before Hand‑ing in Your Work Boots
- Track unclaimed pension pots (estimated 2.8 million are lost or forgotten).
- Consolidate multiple pensions if it makes sense.
- Use budgeting tools, shop around for better rates, and avoid auto‑renewing on stuff like car insurance.
- Leverage employer matching contributions and benefit schemes.
Calculating the Cash Needed to Live the Life You Want
According to the Pensions and Lifetime Savings Association (PLSA):
- Single: £14,400 per year for a minimum standard (bills + a UK holiday).
- Single: £31,300 for a moderate standard (foreign holiday + extras).
- Single: £43,100 for a comfortable standard (lub‑la‑bubbly, spontaneous travel).
- Couples: £22,400, £34,100, and £59,000 respectively in the same categories.
When the Cash Isn’t There? Keep Working, Keep Saving
If you feel short, consider postponing retirement or tacking on a part‑time job to maximize pension contributions, tax relief, and employer matches.
Why Your Own Boss Might Be the Insider You Need
Many employees mistakenly lean on friends and family for pension guidance. Employers now recognize this gap and are offering financial wellbeing support, budgeting education, ISA or Share Plan access, and pension consolidation services. Asking your workplace about these resources can seriously shift the trajectory of your future finances.
