A new survey has revealed that many under-35s have an unrealistic expectation of when they will be able to afford to retire, with many expecting to quit work by 60.

The survey of 4,000 UK adults by Royal London found that many younger adults have only a dim plan of retirement income needs.

The survey found:

• Two-fifth (38%) of adults under 35 plan to stop working by 60
• Under-35s plan to retire six years ahead of current state pension qualification (typically 67), with an average retirement age planned of 61.8
• Only a quarter (27%) have worked out how much they need to live on in retirement

Seven in ten (73%) under-35s confessed they have not worked out how much they will need to retire.

Royal London says that with pension savers expected to live for three decades past age 60, under-35s are not realistic about how much they need to save or when they can retire.

In contrast, older pension savers aged 50-69 did not expect to retire until age 65.4 on average.

Research from the Pensions and Lifetime Savings Association (PLSA) suggests that a single person will need £13,000 a year to achieve the minimum living standard, £23,000 for moderate retirement and £37,000 a year for a comfortable standard of living, excluding housing costs.

Royal London’s research found that, on average, those under 35 age predict they will need £1,086 per month in retirement – an amount that would provide only a minimum standard of living and would be mostly covered by the State Pension, which is currently £886 a month.

 Source: Royal London survey June 2023

Royal London points out that any rent or mortgage costs will dramatically impact monthly costs if under-35s retire without having paid off their mortgage or are still renting.

Clare Moffat, pensions expert at Royal London, said: “Being so far away from retirement, the younger generation have an optimistic view of when they’ll be able to give up work but there is a significant gap between expectations and retirement reality.

“Two-fifths of younger adults do not plan to work beyond 60 years of age, even though they won't qualify for a State Pension until much later, and that poses serious questions about how they will fund the type of lifestyle they want to enjoy when they’re older.”

• Royal London commissioned a survey by Opinium carried out between 23 and 27 June with a sample of 4,000 nationally-representative UK adults.