Gen Z Dream of Travel-Filled Early Retirement

New research suggests that Gen Z imagine a retirement spent travelling the world, buying a holiday home and even writing a memoir.

A poll of 2,000 working adults found 27% of Gen Z want to invest their pensions into experiences rather than possessions.

Meanwhile, 16% dream of moving abroad later in life, while one in three plan to take up a brand-new hobby in retirement.

Pottery emerged as a popular choice, with 22% hoping to turn a new passion into an extra income stream.

Another 22% imagine their golden years will be filled with cruises once they finally down tools.

However, despite ambitious plans for later life, 33% have no idea how much they currently contribute to a pension pot each month.

Even so, 61% say they would already be devastated if they could not achieve their dream retirement.

Helen McGinty, head of financial advice distribution at Skipton Building Society, which commissioned the research, said:

“Young people clearly have big dreams for retirement – from travelling the globe to starting entirely new chapters of their lives.

“But right now, too many are walking blindly into the future.

“With many not knowing how much they’re contributing each month to their pension, yet saying they’ll be devastated if they couldn’t achieve their dream retirement.

“Gen Z need 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 consider how best to spread your retirement pot across your lifetime, especially as health and lifestyle needs change.

“Small steps taken today can make a huge difference to how comfortably and confidently you’re able to live in the future.”

The research also found Gen Z currently believe they will be able to retire at the age of 60, the earliest expectation of all generations.

Millennials think they will finish work at 62, while Gen X hope to retire at 64.

Baby Boomers, meanwhile, expect to stop working at 68.

For 57% of Gen Z, savings are expected to fund their retirement, while 35% imagine cashing in investments and shares.

Meanwhile, 21% anticipate needing a small side hustle to afford everything they want to do.

When it comes to seeking advice, 26% of Gen Z have spoken to their parents about retirement planning.

However, 15% have turned to AI tools such as ChatGPT to learn more, according to the research carried out by OnePoll.

It also emerged that 25% of all those polled expect to spend more of their pension early in retirement.

Six in 10 want to enjoy it as much as possible while they are still fit and active.

Meanwhile, 43% hope to pursue hobbies sooner rather than later.

And 33% simply believe they will not need as much money as they get older.

McGinty added: “Understanding how long your retirement might last, and how your money will need to stretch across that time, is crucial.

“Without a clear picture, it’s easy to underestimate how much you’ll actually need to fund the lifestyle you’re imagining.”

“Getting to grips with your options early allows you to make informed choices and avoid unpleasant surprises later on.

“When it comes to achieving your financial goals, there’s no one-size-fits-all.

“What works for someone else might be completely wrong for you, which is why speaking to an expert can make all the difference.

“We offer free money advice to help you make the most of your savings.

“And for those looking to invest or maximise their pension, we also offer financial advice on the high street – giving you the confidence to plan for the future in a way that feels achievable and tailored to you.”