Millennials will need £1m pension pot to retire

Its data found that a third of millennials expect never to retire, with the expectation of working in retirement 50% higher among 18-24 year olds than those who are nearing, or already in, retirement.

The UK currently has 1.2 million ‘working retired’ adults employed over the age of 65 - approximately one in ten.

If the 3% growth in the ‘working retired’ seen in the last year (October 2015-October 2016) is used to project how many over 65s will be in the workplace by 2056, when today’s young adults will start to hit 65, the figure is set to grow to 3.9million.

Life expectancy at age 65 has increased markedly. Those hitting 65 in 2040 are expected to live another 24 years on average, almost double what it was in 1981, ONS data shows.

Liz Ritchie, Partner at Mazars and Head of Private Client Services said: “Millennials told us that 63 was their anticipated retirement age; a 24-year-old earning around £24,000 a year today would need £1miliion to fund their retirement and maintain their standard of living until they were 80 for men, or 85 for women.

“However, changes to pension structure, the closure of final salary schemes and the erosion of tax benefits have had an effect on the public’s view of pensions which could impact on future generations.

“A million pounds is a realistic figure and at the same time will be very daunting. This makes it all the more important for millennials to seek professional financial advice and plan for their future so they can fulfil their life ambitions.”