Retirement Age Gap Hits Record 5.3 Years in UK
A new report from the Standard Life Centre for the Future of Retirement shows the difference between desired and actual retirement ages has now hit 5.3 years—the largest ever recorded.
Its Retirement Voice research, based on 6,000 UK adults, found that while people hope to retire at 62, they expect to work until nearly 68.
Financial Concerns Drive Expectations
Over a quarter (26%) struggle on their current income, while 63% worry they aren’t saving enough for retirement. 48% believe their retirement finances are largely influenced by factors beyond their control.
Those who actively plan their finances face a significantly smaller retirement expectation gap (4.8 years) compared to those who don’t plan at all.
Demographic Disparities Widen the Gap
The research highlights stark differences across demographics. Renters face a gap of 6.8 years, compared to 2.1 years for outright homeowners. Women face a 6.1-year gap, while men face 4.5 years. Millennials and Gen Z have some of the widest gaps at 6.8 years and 5.9 years respectively.
Regionally, the North East of the UK has the largest gap at 6.6 years, compared to 3.8 years in Greater London.
Despite these concerns, only 12% prioritize pension saving, and 35% haven’t undertaken any retirement planning.
Policy Implications and the Need for Flexibility
Catherine Foot, director of the Standard Life Centre for the Future of Retirement, notes a “noticeable shift” in retirement attitudes. While the desired retirement age remains unchanged, the actual retirement age is drifting further away.
Retirement Concerns and Work Expectations
The study reveals that 51% of respondents expect to work beyond state pension age, despite 18% saying they would be unable to continue in their current role beyond age 60. Financial worries are prevalent, with 51% concerned their retirement savings won’t last, and 42% anticipating a lower standard of living in retirement.
