A new generation is redefining what it means to retire, with dreams that stretch far beyond a quiet life at home. Generation Z, those currently in the workforce, envision their golden years as a period of global adventure, creative pursuits, and significant lifestyle changes, according to fresh research. However, a stark gap exists between these aspirations and their current financial planning, potentially putting their envisioned futures at risk.
Visions of an Experiential Retirement
The study, commissioned by Skipton Building Society and conducted by OnePoll27 per cent of Gen Z stated they want to invest their pension savings into experiences rather than physical assets.
Their ambitions are notably expansive. Many see retirement as a launchpad for a new chapter, with one in three planning to take up a brand-new hobby like pottery. Furthermore, 22 per cent hope to monetise that passion, turning it into an extra income stream. The classic retirement cruise remains popular, with 22 per cent imagining their years filled with voyages. For 16 per cent, the dream involves a permanent move abroad, while others fantasise about writing a memoir or snapping up a holiday home.
The Stark Reality of Financial Planning
Despite these detailed and ambitious visions, the research uncovered a concerning lack of foundational financial knowledge. A third of Gen Z respondents (33 per cent) admitted they have no idea how much they contribute to their pension pot each month. This planning blind spot exists alongside high emotional stakes: 61 per cent said they would be devastated if they couldn't achieve their dream retirement.
Gen Z currently holds the most optimistic view of their retirement age, believing they will stop work at 60. This compares to 62 for Millennials, 64 for Gen X, and 68 for Baby Boomers. To fund their envisioned lifestyle, 57 per cent are relying on savings, 35 per cent on cashing in investments, and 21 per cent anticipate needing a small side hustle.
When seeking guidance, traditional and modern methods are in play. While 26 per cent have spoken to their parents about retirement planning, a notable 15 per cent have turned to AI tools like ChatGPT for information.
Expert Advice: Bridging the Dream-Reality Gap
Helen McGinty, Head of Financial Advice Distribution at Skipton Building Society, emphasised the urgency for this generation to align their dreams with action. "Young people clearly have big dreams for retirement," she said. "But right now, too many are walking blindly into the future."
She stressed that these aspirations "won’t happen without planned and considered action," highlighting that early planning creates more options and flexibility. McGinty also pointed to a key finding: 25 per cent of all polled adults expect to spend more of their pension early in retirement, driven by a desire to enjoy life while fit and active (57 per cent).
"Understanding how long your retirement might last, and how your money will need to stretch across that time, is crucial," McGinty added. "Without a clear picture, it’s easy to underestimate how much you’ll actually need." She advocated for seeking personalised financial advice, noting, "What works for someone else might be completely wrong for you." The building society offers free money advice and high-street financial consultations to help individuals create tailored, achievable plans.
The research ultimately reveals a generation with a bold and experiential vision for their later years. The critical challenge now is transforming those dreams from a hopeful fantasy into a financially secure reality through education, engagement, and early, structured planning.
