UK wealth manager Brown Shipley, a Quintet Private Bank, has just released a new survey focusing on the planned retirement age for younger wealthy UK adults.

Younger generations of wealthy individuals aim to retire earlier than older generations and have less desire to pass on wealth, according to a survey by Brown Shipley.

The research commissioned by the UK firm shows that the average age of planned retirement for wealthy individuals in the UK is 63, but this decreases for younger generations, with 18 to 34-year-olds aiming to retire at 58.

“There is a clear generational shift in financial-planning attitudes,” Kenny Cummings, wealth planner at Brown Shipley, said. “Younger generations are prioritising early retirement and taking proactive steps to secure their longer-term wealth goals.” 

The survey covered 4,000 UK adults and showed that the planned retirement age for wealthy UK adults gradually increases as they get older. On average, those aged between 35 and 54 plan to retire at 61, while those aged 55 and above plan to retire at 66.

Younger generations may be on track to achieve their earlier retirement goals, with almost three-quarters of wealthy 18 to 34-year-olds having maintained their pension contribution, despite the rising cost of living. By comparison, 67 per cent of those aged between 35 and 54 say they have maintained their pension contribution, a figure that drops to 40 per cent for those over 55.

On average, just over half of wealthy UK adults have maintained their pension contribution despite the challenging financial environment. Men are more likely to have increased their pension contributions, with 20 per cent having done so compared with 16 per cent of women, the survey reveals.

Despite signs that younger generations are less likely to have had their pension planning impacted by the rising cost of living, this is not necessarily the case when it comes to passing on wealth. Younger wealthy UK adults are more than twice as likely as older generations to say that they do not plan to pass on wealth as they believe they will need the capital to cover their own costs in later life. Over two-fifths of affluent 18 to 34-years-olds do not plan to pass on wealth due to rising costs in later life, compared with 37 per cent of those aged between 35 and 54 and 20 per cent of those over 55.

Costs
“This may reflect increased awareness of the escalating costs associated with later life, such as the high cost of long-term care and increasing healthcare spending. As this research shows, younger Brits perceive the need to safeguard assets to cover personal expenses in retirement and ensure their quality of life in later years," Cummings said.

“There are signs that younger Brits are laying especially strong foundations to realise their retirement ambitions, no matter the economic conditions. Long-term wealth planning continues to be important for all generations, however, as everyone must continually align their personal financial goals with the variety of challenges that may come one’s way,” Cummings added.

Brown Shipley’s parent company is Quintet Private Bank, which heads a European network of private banks and wealth managers from its Luxembourg headquarters.