Currently, pension savers need \u00a31.4million in their pot for a ‘comfortable’ standard of living, according to definitions from the Pensions and Lifetime Savings Association.<\/p>\n
This means young people will need to save approximately \u00a31,600 per month, or \u00a319,200 per year, assuming contributions rise by 2 per cent each year and the pot grows at 5 per cent.<\/p>\n
For a couple<\/a>, this figure rises to \u00a34.3million, compared with \u00a31.9million today, but means a lower amount of saving is required for each member of the couple.<\/p>\n Rathbones accounted for a 2 per cent annual inflation rate over the 40-year period, with the pension pot enough to fund 25 years of retirement.<\/p>\n Gen Z refers to people born between 1997 and 2012.\u00a0\u00a0<\/p>\n For what the PLSA deems a ‘moderate’ retirement, today’s Gen Zs will need to build a pot worth \u00a32.2m, and a couple will need \u00a33.1 m<\/p>\n While the analysis doesn’t account for the state pension, which currently pays \u00a311,973 per year, it also doesn’t include other costs like rent., mortgages and social care.<\/p>\n Rebecca Williams, divisional lead of financial planning at Rathbones, said: ‘The figure is shocking and serves as a stark reminder of how inflation can quietly erode retirement savings.<\/p>\n ‘What’s considered an adequate retirement nest egg today may barely scratch the surface of what Gen Z will need when they retire.’<\/p>\n On top of this, with a rising cost of living, higher housing costs and student debt, younger people are finding it harder than ever to save for retirement.<\/p>\n ‘While a comfortable retirement means different things to different people, younger generations face higher hurdles – from high housing costs to student debt – while also needing to ensure their savings stretch further to account for greater longevity,’ Williams said.<\/p>\n For what the PLSA deems a ‘moderate’ retirement, today’s Gen Zs will need to build a pot worth \u00a32.2million, and a couple will need \u00a33.1 million \u2013 the same amount needed for a ‘comfortable’ retirement for a single person.<\/p>\n This includes \u00a356 per week on groceries, and \u00a332 per week on meals out, compared to \u00a375 per week on groceries, and \u00a342 per week on meals out for a comfortable retirement.<\/p>\n For a ‘minimum’ standard of retirement living, equating to income of around \u00a322,000 annually in today’s terms, young savers will need a pot worth almost \u00a31million, at \u00a3947,000.<\/p>\n For a couple, some \u00a31.5million would be needed for the minimum pot.<\/p>\n Currently, the average pension pot of someone in their sixties is just \u00a3228,000 for men and \u00a3152,600 for women, well below even the amount required for a minimum standard of living in 2025.<\/p>\n Williams added: ‘With final salary schemes fading into history, the responsibility for retirement savings increasingly falls on individuals.\u00a0<\/p>\n ‘Auto-enrolment has helped lay the groundwork, but minimum contributions often fall short – especially for those in irregular or gig economy roles, where pension gaps are common.\u00a0<\/p>\n ‘Frequent job changes can also leave savers with scattered, forgotten pots.<\/p>\n ‘Starting early and saving consistently is key; even modest, regular contributions can grow substantially over time.\u00a0<\/p>\n ‘With a longer investment horizon, younger savers can typically afford to take on more risk, potentially boosting returns.’<\/p>\n![\"\"](\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2025\/10\/102834771-15158857-image-a-2_1759995010946.jpg\")
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