Gen Z workers are three times more likely than the wider population to want to retire before the age of 55, amid growing online interest in the Financial Independence, Retire Early (FIRE) movement, research from Skipton Building Society has revealed.

The research, based on a survey of 2,000 working adults, found that 9.3 per cent of Gen Z respondents hoped to retire before 55, compared with 2.9 per cent of the wider population.

Gen Z respondents also estimated they would need an average retirement pot of £1.05m to achieve their ideal lifestyle in retirement, significantly above the national average target of £675,000.

The findings come amid increased interest in the FIRE movement, which encourages people to save and invest aggressively with the aim of achieving financial independence and potentially retiring significantly earlier than usual.

Skipton revealed that Google searches for 'FIRE movement' had increased by 200 per cent over the past month, while the largest FIRE community on Reddit now has more than 900,000 members.

Social media is also playing an increasingly prominent role in how younger savers access financial information, with 29 per cent of Gen Z respondents saying they turned to social media for guidance.

However, despite their ambitious retirement targets, 59 per cent of Gen Z respondents said they did not know how much they were contributing to their pension each month.

Skipton Building Society head of financial advice distribution, Helen McGinty, warned that younger savers should focus on their own interpretation of financial independence rather than comparing themselves with examples seen online.

“There isn’t a one-size-fits-all approach when it comes to the FIRE movement," she said.

“Some may prefer a work-optional lifestyle or focusing on building investments early in their career. That’s why it’s important to not compare yourself to someone else’s journey online.

“The best approach fits your retirement plans, lifestyle and overall goals.”

McGinty also highlighted the need to consider how pension savings fit alongside other assets when planning for early retirement, noting that many younger savers will be unable to access private pensions until at least age 57 under current legislation.

“That doesn’t mean retiring early isn’t possible, but it’s worth considering how pensions will fit alongside other savings and investments,” she added.

The research also suggested that younger generations may increasingly view retirement as a transition towards more flexible working rather than stopping work altogether.

Almost a quarter (23 per cent) of Gen Z respondents expected to start a business in retirement, while 22 per cent hoped to turn a hobby into a source of income.

McGinty stressed that younger savers had the advantage of time when building their retirement savings, but said understanding existing pension contributions was an important starting point.

“Building gradually through consistent habits over many years can help put you in a stronger position later on,” she continued.

“But you also have to understand how much you’re contributing, as it’s difficult to know whether you’re on track for tomorrow’s goals if you don’t know where you are today.”

She also encouraged savers to review their retirement plans regularly as their circumstances change, rather than focusing solely on reaching a particular savings target.

“Retirement isn’t a static goal, as health, lifestyle and family needs change over the years.

“Inflation can also affect the spending power of your savings, and pension legislation may change, which is why it’s important to revisit your plans regularly rather than focus on a single number.”

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