Research by FSCS found rising costs of living is creating concerns that money will not go far enough in retirement.
Future retirees are optimistic they will have a better retirement than their parents but are worried about how they will afford it.
New research released by the Financial Services Compensation Scheme (FSCS) found that 44 per cent of 18 to 24-year-olds believed their retirement would be better than their parents, compared with only 24 per cent who believe it will be worse.
The least optimistic were 35 to 44-year-olds, only 30 per cent of the age group believed their retirement would be better than their parents, compared with 35 per cent who believe it will be worse.
Differences were even more marked among those who plan to retire before state pension age, with 51 per cent believing their retirement would be better.
Lila Pleban, chief communications officer at FSCS, said: “It’s encouraging to see the optimism in future UK retirees, but it’s unsurprising that many are also concerned when it comes to their ability to fund their retirement dreams."
Cost of living crisis
"The UK’s current economic climate, including the rising cost of living and housing costs, is a source of concern for those making any major financial decision. And with retirement a particularly emotive milestone and one that everyone wants to get right, it is understandable these pressures, and concerns money will not go far enough, are front of mind when thinking about their future.”
Despite the positivity, the data found that economic headwinds, such as rising costs of living, are creating concerns that money will not go far enough in retirement.
The research, which polled 2,013 UK adults aged between 18 to 65, found that 56 per cent fear that their standard of living will drop during retirement and 47 per cent worry about how they will cover their housing costs past retirement age.
Interestingly, 49 per cent said inability to afford retirement was their reason to continue working past the state pension age.
