Baby Boomers are most likely to rely on pensions alone in retirement, with the majority of millennials (56 per cent) and Gen Z (62 per cent) instead expecting to rely on a mixture of pension and property as their main retirement asset, research from Standard Life has found. 

Analysis of the findings of Standard Life’s Retirement Voice research revealed that this is roughly double the proportion of older savers who would say the same, as 29 per cent of Gen X and 25 per cent of Baby Boomers said they see a mixture of pension and property as their main retirement asset. 

Instead, Baby Boomers favoured a single source of income in retirement of pensions (40 per cent), while Gen X were the only generation that favoured property (38 per cent).

In contrast, just 26 per cent of Millennials and a third (34 per cent) of Gen Z expect pensions to be their main retirement asset, and far fewer are expecting to rely just on property as their main retirement income (15 per cent of Millennials and just 4 per cent of Gen Z). 

Standard Life acknowledged that it is perhaps unsurprising that fewer younger people feel property alone can support them in retirement, given today’s housing and mortgage market, as younger generations face significant challenges in getting onto the property ladder.

The group previously warned that Millennials and Gen Z often face increased financial vulnerability, with several other life and financial milestones to consider, such as buying a house or starting a family.

It also suggested that people's attitudes may shift as they move through different life stages, suggesting that Baby Boomers, for example, may have initially seen property as a key asset but later realised the practical difficulties of accessing their home’s value via downsizing.

Commenting on the findings, Standard Life retirement savings director, Mike Ambery, said: “Younger generations seem to be taking a more flexible approach to retirement, seeing both pensions and property as key parts of their financial future. It’s smart to build a well-rounded plan, with as many bases covered as possible. 

"While pensions offer tax perks and employer contributions, property provides long-term security and, crucially, a roof over your head.

“Those who are unable to or who choose not to get on the property ladder through their working lives and rent in retirement will need additional savings to cover housing costs alongside day-to-day expenses. 

"Gen X is in a unique position, falling between the era of widespread defined benefit pensions and the introduction of auto-enrolment in 2012 while often benefitting from a more accessible housing market than Millennials – making property a more viable option for them."

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