"Notable" generational differences in retirement goals have been highlighted in research from Legal & General (L&G), which found that younger respondents aged 16-24 are the least optimistic, with less than a third (31 per cent) expecting a moderate retirement.

In contrast, older age groups, mainly those aged 55+, were more likely to anticipate a moderate (41 per cent) or comfortable (22 per cent) retirement.

The research found that those aged 55+ expect to retire between 65-69, which L&G said reflected a "realistic view" that aligns with the current state pension age of 66, suggesting that older savers they have a clear understanding of the financial challenges that come with retirement.

However, those in the older age group said that they expect to retire on around £256,836, which is slightly below the Pensions and Lifetime Savings Association's moderate retirement recommendation of £277,500.

Gen Z were also more cautious in the amount they expect to retire with, aiming for an average of £259k, while those aged 35-44 year-olds had the highest retirement savings expectations, at £345,946.

However, L&G noted that this still falls slightly short of the PLSA's comfortable retirement benchmark of £397,500 for singles.

Despite the potential shortfall, L&G found that more than a third (39 per cent) believe they will be able to have a moderate retirement with some money left over for non-essentials.

Given this, L&G highlighted the findings as evidence of the need for better retirement planning guidance across all ages, with a lack of financial stress a key desire for many savers.

Indeed, L&G found that 61 per cent of respondents would see a 'perfect retirement' as simply living stress-free without financial worries, while 51 per cent were keen to keep fit and 45 per cent are looking for freedom to travel.

Relocation is also a key dream for many in retirement, as L&G found that more than a third (36 per cent) of UK adults express a desire to relocate in retirement, with 17 per cent stating they plan to move to a different country.

But finances remain a key barrier to preparing for these goals, as L&G found that 55 per cent of UK adults are being kept from their dream retirement due to financial constraints, while 37 per cent are held back due to health related issues.

Generational differences were again evident though, as whilst 12 per cent of UK adults admit to having a lack of knowledge around preparation for retirement, this was most common among 16-24-year-olds, with 22 per cent citing it as a key barrier.

Commenting on the findings, L&G Retail Retirement managing director, Lorna Shah, said: "The dream of relocating or travelling in retirement is a popular choice among retirees, but it requires careful financial planning to become a reality.”

“At Legal & General, we have a variety of tools to help you prepare for your retirement,
such as our Retirement Income Calculator to help keep your retirement plans on track.”

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