Younger people expect to be able to retire earlier and with more income than their older counterparts, research from Canada Life has revealed.

On average, people aged between 18 and 34 expect to retire by the age of 60, despite the state pension not being available until at least eight years later.

Meanwhile, those aged 55 or over expect to retire when they are aged 66, on average.

This generational divide was also evident in expectations of how much money is needed to fund a comfortable retirement, with 18-34 year olds believing they will need an average of £35,000 a year in retirement.

By comparison, those aged 55 and older thought they would need £25,000 a year on average to live comfortably in retirement.

However, while people aged 55 and over were anticipating the need for less money in retirement than younger people, they were less confident in having enough saved for when they stop working.

More than half (53 per cent) of those aged 18-34 were confident they would save enough by the time they would retire, compared to 39 per cent of those aged 55 and older.

Canada Life’s research also found that 19 per cent of over-55s still had no plans at all for their retirement.

The older age cohort were more likely to expect to rely on the state pension compared to the younger group, at 72 per cent and 27 per cent respectively.

Younger people expected workplace pensions (33 per cent), cash savings (32 per cent) and investments (24 per cent) to fuel their retirement pots.

Commenting on the findings, Canada Life MD of retirement, said: “It makes sense that attitudes to retirement will differ depending on age and generation. Underlying optimism of Millennials and Gen Z may be in part due to the introduction of auto-enrolment, and potentially an expectation of inheritance.

“Whilst there is nothing wrong with aspiring towards an earlier or a more extravagant retirement, it’s important not to lull into a false sense of security. No matter whether you’re a Boomer, Millennial, Gen Z or otherwise, remember that it’s never too early or too late to start planning.”

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