Top financial priorities by age – and why a comfortable retirement may be out of reach

Achieving a comfortable retirement is a top financial priority for all but the youngest cohort, according to new research – but the figures suggest millions are seriously underestimating how much that will cost.

As many as 7.6 million British pension saving adults have already set their sights on a comfortable retirement as their main goal, research by bank Chase found, extrapolating from a survey of 3,000 people. This aim cut across all age groups, except 18 to 27 year olds.

Kuba Fast, UK CEO of Chase, said: “Given the unpredictability of recent years, as a nation, we’ve started to focus more on the smaller joys in life. However, when considering our long-term goals, a comfortable retirement remains a top priority for many.”

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When asked ‘how much do you think you’ll need to save to realise this goal’ the average amount people assumed they would need was a pension pot of £276,225.

More than two thirds (68%) of those saving for a comfortable retirement feel confident they will reach their goal, and this increased to three quarters (77%) feeling positive they will be able to retire early.

However a pension pot of £276,225 equates to just £13,811 each year over a 20 year retirement, not taking into account any investment growth.

Or, using Aviva’s annuity calculator, it could give a tax-free lump sum of £69,056 and a yearly income of around £15,230. With the state pension factored in – currently £11,973 a year for the 2025/26 tax year – that gives a single person £27,203 a year. This falls far short of what research has suggested is needed.

How much do you need for a comfortable retirement?

For a comfortable retirement a single person needs around £43,900 a year – after tax – according to Pensions UK.

The cost of a comfortable retirement allows for spending on extra luxuries such as regular beauty treatments, theatre trips and two weeks of holiday in Europe a year.

For this level of retirement, Pensions UK calculated someone living alone would need a pension pot of around £540,000 to £800,000, if using it to buy an annuity for a guaranteed income. For two people sharing bills it would be £300,000 to £460,000.

Financial priorities by age

Whilst retirement may be seen as a primary focus reserved for older generations, it's a growing priority for younger generations too with 13% of Millennials and Gen X focusing on the goal.

In contrast, Gen Z is more focused on short-term objectives, such as working out a good time to buy a house to get on the property ladder (11%), starting their own business (9%), and pursuing further education (6%).

We look at the average pension pot by age in a separate article.

Rising costs and inflation prevent early retirement

When looking at what’s holding people back from achieving their financial goals, inflation (57%) and the higher cost of living are cited as the biggest reasons people are not confident they will be able to save.

Three in five Millennials (60%) and two thirds of Gen X (66%) who are not confident have been affected by inflation and rising costs compared to two in five Gen Zers (41%). However, Gen Zers experienced the most significant shift in their circumstances, hindering their ability to save towards their goals (26%).