The current air of confusion and uncertainty around who will provide for pensioners has created a rift in UK retirement expectations between those who expect a better standard of living than today's retirees (35%) and those who expect it to be worse (37%).
It found 63% of all working age people see their retired relatives as well-off, and 57% expect their retired standard of living to be the same or better still. Baby-boomers are most likely (66%) to aspire to their retired relatives’ current level of financial comfort, while mid-lifers (35-54) are the least impressed (61%) out of the three different age groups.
Meanwhile, 70% of young adults expect to enjoy the same or a higher standard of living than their retired relatives, compared to just over half of all mid-lifers (53%) and a mere 38% of baby-boomers.
However, this trend is not expected to continue with 46% of respondents expecting the next generation to have a more comfortable retired standard of living than they will, while 58% of baby-boomers expect their offspring to be better-off, compared to 44% of young adults.
Hyman Wolanski, head of pensions at Alliance Trust, said: “Economists have long predicted that the baby-boomers will be one of the most comfortably off generations in recent history, but this sunny outlook has clearly not filtered through to those approaching retirement.
"Hardly surprising when we consider the doom and gloom about pensions in the last few years, and its impact on those wrestling now with how much they will get by in their old age.”
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