An intergenerational study reveals millennials are ridiculously optimistic about when they’ll retire

Britain's 20-somethings have unrealistic expectations as to when they will retire, thinking that they will be able to down-tools much earlier than any other age group.

Those aged between 20 and 30 think that they will retire halfway between their 60th and 61st birthday. Across all age groups, Britons think on average that they will retire just before their 62nd birthday according to the research prepared by Prudential.

Experts have warned that with an ageing population, people must start saving more and sooner for their retirement. This is especially important as progressively fewer numbers of workers will receive a final salary pension and instead be dependent on their own savings – through a defined contribution scheme for example – to fund their later years.

Although such a progression is likely to have a greater impact on those that are younger rather than older, the data suggests that the older people are, the older they expect to retire.

Vince Smith-Hughes, a retirement income expert at Prudential, said:

The desire to retire as early as possible is completely understandable, but with life expectancies increasing all the time and the average retirement now lasting over 20 years, it is unlikely to be achievable for everyone.

In addition, the research also indicates that younger Britons anticipate receiving retirement incomes that are the same or less than what those retiring receive.

This would mean that people who are up to 45 years away from retirement are expecting to be able to live on £17,700 or less per year, an amount that would be considerably less in real terms once they get to retirement age.