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.”

Try 6 free issues of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

Sign up for MoneyWeek’s free twice-daily newsletter.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Sign up

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 and the average savings by age in separate articles.

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%).