Retirement unlocked: Essential insights for every age

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The latest LV= Wealth and Wellbeing Research Programme edition 19 – a quarterly survey of 4,000 nationally representative UK adults aged 18+ up to December 2024 – offers revealing insights into attitudes towards finances and retirement planning among the various age groups.

The research shows those in the pre-retirement category (55-64) are the most likely to say they’re saving less (31%) and that they have dipped into savings (24%). Similarly, one in four people surveyed say they are saving less due to rising costs of living.

Meanwhile, despite the economic pressures, almost three in 10 (29%) UK consumers admit they have never researched or asked for advice about their personal finances (a 6% increase from December 2023). This rises to 38% for those with a household income under £25,000 and reduces by half to 19% for those with a household income exceeding £100,000.

The LV= Wealth and Wellbeing Research Programme Edition 19 includes more revealing insights about the nation’s finances and highlights how seeking professional pensions and retirement advice can help you achieve a comfortable retirement.

Almost 4 in 10 UK adults are overwhelmed by financial information

According to data from the latest Wealth and Wellbeing Research Programme, more than half (54%) of UK adults feel empowered to make financial decisions, 64% are confident they can access reliable sources of information, and 58% know which sources they find trustworthy.

However, 38% of those surveyed also say they feel overwhelmed by the amount of financial information available and almost a third (32%) are confused by the information they find. Whether it’s understanding how different types of pensions work or what annuities mean, seeking financial advice from a qualified adviser can enhance your retirement knowledge and help you prepare for life after work.

More than half of non-retired UK adults fear they won’t have saved enough for a comfortable retirement

One way to prepare for retirement is to get professional financial advice. When it comes to retirement planning, 54% of non-retired UK adults who took part in the survey say they are not confident they’ll have enough savings put away to be comfortable when they retire.

According to the data, women (53%) are less confident than men (40%) that they’ll have enough money saved to be comfortable when they give up work and retire.

Confidence higher among those who seek retirement advice

The research programme suggests that consumers (59%) who see or regularly see a financial adviser are more confident about retirement than those that don’t (37%).

At the same time, those who have seen a financial adviser are significantly more likely to take actions to prepare for retirement than those who haven’t. 30% of those who use financial advisers pay into a workplace/personal pension, but only 13% of those who don’t use advisers are doing this. This suggests that those who use a professional financial advice service are more likely to enjoy the benefits of paying into a pension such as employee contributions and the tax-free personal allowance to boost their retirement income.

Significant number of UK adults don’t know how they’ll fund their retirement

The number of people who are unsure how they’ll pay for retirement has grown in the past year, according to the research. In September 2023, 15% of UK adults fell into this category, rising to 18% by September 2024. While the figure plateaued in December 2024 , it highlights the importance of seeking financial advice to understand the best strategies for retirement planning at every stage of life. Not only can this help ensure your money doesn’t run out too soon when you retire, but it will also last for the rest of your life.

Personal/workplace pension remains the most popular source of retirement income for UK adults

Over the last six consecutive waves of research conducted by LV=, personal/workplace pensions remain the most popular way UK adults plan to fund their retirement. This amounts to 44% of those surveyed compared to the 39% who plan to use savings and investments, 19% who plan to rely on the State Pension only, and 16% who aim to live off their partner’s pension(s).

Meanwhile, 9% of respondents say they are planning to use the value of their home to help pay for retirement, whether by downsizing or through equity release which allows you to unlock the value of your property and turn it into tax-free cash.

Gen Z most likely to use equity release to financially help others

Equity release is most likely to be considered to cover unforeseen later life expenditure, with Generation Z (11%) also the most likely to say they would use it to financially help others. Overall, 10% of UK adults aged 18+ say they would consider equity release for these reasons, rising significantly amongst those who have seen a financial adviser (13%) compared to those who never would (4%).

Similarly, the latest LV= data shows that 9% of Generation Z (aged 13-28) say they are most likely to consider equity release to enhance their lifestyle in later life, which is significantly more than Generation X (aged 45-60) at 5%. Gen Z (11%) are also the most likely to consider equity release to help friends or family financially compared to Millennials (aged 28-43) 9%, Gen X 3%, Baby Boomers (aged 59-77) and Silent & Greatest (aged 80-97) 2%.

According to the research, 10% of UK working adults say they are most likely to consider equity release to top up their pension income. However, the most popular reason to consider equity release amongst UK adults aged 55 plus was to cover health or care requirements in later life (7%).

What each generation needs to be aware of when it comes to retirement

People from each generational group have important factors to consider when planning for retirement. Whether you’re a Gen Z or Baby Boomers, the following suggestions could help you financially prepare for later life when you finally give up working.

Gen Z (born 1995-2012)

Gen Z, the youngest generation to take part in the survey, may consider saving for retirement early and let their investments to grow over time. Not only will this allow them to leverage maximum benefits from interest, but they can also take full advantage of any employer pension contributions available through their work. Similarly, seeking professional investment advice will also help Gen Zs understand the diverse range of savings and retirement options currently available.

Millennials (born 1980-1994)

Balancing living expenses with long-term saving can be a challenge for Millennials. However, like Gen Z, Millennials could consider ways to boost their pension pot by paying regularly into employer-sponsored retirement schemes that include matching contributions. Around this time Millennials may also start to think about the State Pension and other ways of growing their retirement savings such as investing in equities.

Gen X (born 1965-1979)

Gen X may be considering safeguarding their pension savings while addressing any shortfalls regarding National Insurance contributions that may affect their State Pension. Again, making regular payments into workplace pension schemes that are matched by employers can offer maximum value, while flexible personal pension plans can also assist with preparing for retirement. Gen X may also consider leveraging tax-efficient schemes such as ISAs as a means of supplementing their retirement income, or pension annuities that provide a guaranteed income for a fixed term or the rest of their life.

Baby Boomers (born 1946-64)

As Baby Boomers near retirement or finally give up work, they could be looking at optimising their savings and retirement income by assessing both workplace and private pensions. It may be that combining or consolidating pensions will offer maximum benefits, or products like equity release will give access to money tied up in their property either as tax-free lump sum or a series of regular payments. For Baby Boomers, maximising State Pension benefits is crucial, so it’s important to fill any gaps in National Insurance contributions while reviewing cash ISAs and any other saving schemes that are about to come into fruition.

Silent and Greatest (born 1925-45)

Even though the Silent and Greatest generation are likely to be retired, it is never too late to review or tweak their retirement plans. The Silent and Greatest generation should ensure they are claiming all their State Pension entitlements and receiving maximum value from their workplace or private pension schemes. Products like annuities or equity release can also provide a steady retirement income, while ISAs offer tax-free interest to top up savings. People who belong to the Silent and Greatest generation should also consider pension and retirement advice to help them get the most out of their savings.

Marc Perry, advice and consumer channel director at LV= said:

“Retirement planning can be complex and challenging for people of all generations. Whether you’re starting out in your career or ready to give up work, it is never too late to review your finances and consider the options open to you.

“Planning for retirement is often a lifelong journey, and we would always recommend seeking expert financial advice to ensure you have enough money in retirement and your future is secure.”