Millennial workers believe they can never give up work because they cannot save enough to fund their retirements, according to a new survey.
Millennials – aged between 18 and 35 years old – are convinced they cannot ever stockpile enough money to stop working, so look towards earning as much as they can to fund a better lifestyle, the report suggests.
Around half of the youngest millennials expect to work at least part-time once they reach retirement age, which will leave an estimated workforce of more than 4 million over 65s by 2056.
Liz Ritchie, Partner at accountancy firm Mazars, where she heads 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 £1 million 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 influenced 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 more important for millennials to seek professional financial advice and plan for their future so they can fulfil their life ambitions.”
Health will have a large impact on older workers keeping a job past retirement, says the firm.
Ability to work
“The importance of making long term financial plans for later life is borne out by health statistics. Improvements to healthcare mean life expectancy in the UK has never been higher and consequently the number of years in retirement that must be financially supported is at its highest too,” said Ritchie.
“Life expectancy at age 65 has increased markedly. We now expect those hitting 65 in 2040 to live another 24 years on average, almost double what it was in 1981. However, the ability to work all these years is another matter.
“The number of people living with three or more long-term health conditions is expected to reach 2.8 million by 2018. This is a 50% increase in just 10 years. The over 60s are most likely to suffer from a long-term condition, with 58% suffering compared to 14% of under 40s.”
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