Sleepwalking Into Retirement: Pension shock among over 65s highlights

risk facing all generations

• Retirement denial spans generations - from carefree Gen Z to 17% of over 65s still in the dark

• Reality gap for pensioners: 1 in 7 over 65s think £100k is ‘enough’, despite it lasting just 4–5 years at a modest standard of living

• 4 in 10 adults have barely thought about retirement, leaving millions at risk of working longer

As rising living costs make later-life finances increasingly fragile and reports of one in six*retirees being pushed back into working life, Skipton Building Society reveals a widespread lack of retirement planning across every generation - with many adults at risk of having to work longer than intended.

Skipton’s research with 2,000 working adults** found that 38 per cent have barely given retirement a moment’s thought, despite growing evidence that insufficient planning is forcing older people to delay leaving work. While complacency is highest among younger adults - 61 per cent of Gen Z say they haven’t seriously considered retirement - concerningly more than one in ten, (17%) of those aged 65 and over admit the same.

The findings suggest that continuing to work in later life is becoming less of a lifestyle choice and more of a financial necessity.

No other age group recorded as low a planned retirement fund as those aged 65 and over, where nearly one in seven (14%) believe under £100k would fund their dream retirement, despite 18% wanting to travel the world.

Skipton’s analysis found that even when combined with the State Pension, a £100,000 pension pot would only cover around four to five years of retirement for someone living at a moderate level, as defined by the Retirement Living Standards***.

Despite 17 per cent of over 65s having no idea how much they currently contribute each month to their pensions, over a third of this age group (39%) are worried about running out of money.

Helen McGinty, head of financial advice distribution at Skipton Building Society, said:

“With many not knowing how much they’re contributing each month to their pension, yet worried about not having enough money, it’s time 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. It’s also important to think carefully about how your retirement savings will support you throughout your lifetime, especially as health and lifestyle needs change. Having a trusted place to turn for guidance can make all the difference - and at Skipton, members can access free money guidance alongside regulated financial advice to help them take small, informed steps today that shape a more confident future.”

The average Gen-Z expect to need a much larger retirement fund, with over one in ten (11%) expecting to need between £1m-£1.09m. However, despite these big ambitions for later life, 33 per cent having no idea how much they currently contribute each month.

It also emerged 33 per cent of all those polled expect simply believe they won’t need as much money as they get older, despite rising costs.

Notes to Editors:

*Figure reported by Standard Life

**Skipton Building Society research with OnePoll

***Skipton Building Society modelled how long a £100,000 pension pot could last alongside the State Pension, based on a moderate standard of living as defined by the Retirement Living Standards. Figures are shown in today’s money and assume 3% annual real terms growth, UFPLS withdrawals, no remaining personal allowance after the State Pension, and a cautious approach to growth. The analysis is illustrative only.

For further information on this release, or if you would like any insight and data on house prices, mortgages and savings from across the Skipton Group or commentary and case studies please contact Skipton’s Press Office.

Skipton Building Society — part of the Skipton Group — exists to help people have a home, save for the future and enjoy long-term financial security, a purpose that has remained unchanged for more than 170 years.

Providing mortgages, savings and financial advice with a network of 82 branches. Skipton was founded on fairness and today supports over one million members through two core businesses: Homes and Money.

Homes is focused on helping people move confidently at every stage of their home buying journey, with a strong commitment to first time buyers through innovation, practical tools and tailored support.

Money helps members build financial confidence, so every Skipton member benefits from access to a complete range of financial advice services. From free savings advice, through to pension planning and regulated investment advice, Skipton is unique on the high street for offering a truly end to end advice proposition. This breadth ensures members receive the right level of support for their needs, at the right time throughout their life.

Skipton Group and Skipton Building Society may, from time to time, wish to share press coverage via their official LinkedIn channels: @SkiptonGroup and @Skipton Building Society.

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