People with complex family demands on their finances will make up the largest group of consumers in the retirement market by 2035, according to research by Canada Life.

The research dubbed the group ‘complex families, complex finances’ and found that its growth had been driven by socioeconomic factors such as getting married or divorced later in life and paying for the cost of care.

As further examples, the research, which was conducted in conjunction with Trajectory, found that rising divorce rates among people in their 40s had increased the regularity of single person households and cost an average of £15,000.

Another trend that was found to threaten pension saving was that millennials were expected to pay £44,000 more in rent by the age of 30 than baby boomers, while the average age of first marriage is now four years higher than it was two decades ago.

Furthermore, the research pointed out that more women over 40 give birth than women under the age of 20, which will lead to parents supporting their children much later in life.

Household spending has also been impacted in the short term by young people returning to their family homes during the Covid-19 pandemic.

Trajectory co-founder and CEO, Paul Flatters, said: “As social norms are changing, so too is the shape of retirement. More people are now getting married and divorced later in life, boomerang children are disrupting later-life spending, and those approaching retirement are often caring for elderly parents as well.

“This all inevitably has an impact on this group’s ability to accumulate wealth - and the time they have to save for retirement - which is affecting their retirement lifestyles. As these trends accelerate, the growth of this group will too.”

Canada Life wealth management managing director and executive director, Sean Christian, added: “With this group of retirees set to grow, advisers need to be aware of how socioeconomic factors are changing the retirement landscape.

“As these trends continue to evolve, the advice industry must ensure it’s on the front foot and constantly considering how these complex retirement journeys will shift the type of support and guidance they offer clients, which will need to be tailored to their individual circumstances.”

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