Workers fear they’ll have to work five more years than they want to before retirement

Two in three workers are concerned they are not saving enough to stop

The ages at which people want – and expect – to finish working and retire continues to grow, according to a new survey.

That retirement gap is now above five years for the first time, the results of Standard Life’s retirement voice report show, with the average age people want to retire now standing at 62.

But the average age for when they actually expect they can stop working is almost 68.

The state pension retirement age is due to increase to 67 by April 2028, with a further hike to age 68 intended during the 2040s, though being subject to review.

A 5.3 year retirement gap on average in those new estimations is even more pronounced when broken down by different demographics, with those who rent versus those who are outright homeowners showing a huge variance in particular – a 6.8-year gap for renters, against just a 2.1 year gap for owners.

The results show a widening gap which is caused not by people wanting to retire notably earlier on average, but by them estimating the age at which they’ll be able to do so has shifted later.

In addition, more than half (51 per cent) of the 6,000 respondents to the survey, carried out by Ipsos, were worried that their retirement finances wouldn’t actually last.

Research from the Retirement Living Standards organisation suggests a single-person household presently requires an annual income of £13,900 a year to fund a minimum lifestyle in retirement.

However, Standard Life’s report concludes that over a quarter (26 per cent) of UK adults – which included a nationally representative number of both retired and still-working individuals – are struggling to get by on their current income.

Close to two in three, meanwhile (63 per cent), worry they are not saving enough for retirement.

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Catherine Foot, director of the Standard Life Centre for the Future of Retirement, said: “This year’s Retirement Voice findings point to a noticeable shift in how people are feeling about retirement. The age people would ideally like to retire hasn’t changed, but the point at which they think they will actually be able to stop work is drifting further away.

“That is happening as the state pension age itself begins its phased rise from 66 to 67, and against a backdrop of renewed pressure on household finances and a wider sense of economic and global uncertainty. Together, these factors risk making retirement feel less certain and more distant, rather than a milestone people can plan towards with confidence.”

Ms Foot also highlighted that larger “retirement gaps” emerged in the data for each of women, those living in the North East and younger people, as well as aforementioned renters, with Gen Z respondents wanting to retire at 60 but facing an estimated almost six-year gap to do so.

“There is, however, a positive message for individuals,” Ms Foot continued. “The findings show a very clear relationship between planning and people’s retirement expectations, even among those on lower incomes. Starting earlier, understanding what you already have and, where affordable, increasing pension contributions can make a meaningful difference. For many people, relatively modest action now could help bring the retirement they want considerably closer.”

The report “underlines the scale of the opportunity presented by the next stage of the Pensions Commission”, she added, to shape the long-term future of the UK’s pension system.