New research from Aegon UK says that young adults between 16 and 24 are the most unrealistic when it comes to their pension goals.  The report cites that this age group is hoping to retire with an average annual income of  £64,000 a year, which is almost six times the average income they are actually on track for. 

These 16 to 24 year-olds, according to the data, are hoping to retire at 63.  Unfortunately for them, Aegon UK broke down the numbers to determine if this is even really plausible.  In order to achieve a pension pot that would fund an annual income of £64,000, a 20-year-old aiming to retire at 68 would have to save £500/ month, assuming a 5% return.  In order to retire at 63, this number increases.  Realistically, over half of this age group doesn’t contribute any of their money currently to a pension pot at all.

HR experts chime in explaining that as people get older their retirement ambitions do tend to tail off, meaning their overall hopes and dreams for a certain income number become more realistic.

Oddly enough, although 16 to 24-year-olds are the most ambitious when it comes to their pensions, they are actually the least involved or engaged with their pension savings.  Approximately seventy percent of this age group has never done anything to review or affect plans for retirement.  Over half don’t even know whether they are eligible to be enrolled in a pension via their workplace.

The findings of this Aegon UK report, while not very pretty, are very realistic when it comes to the expectations of the youth.  If things don’t change for this age group, many people will fall short of the retirement income they want.