'Thatcher's children' expect a pension of £30k a year

Young people in Britain are saving nearly one fifth of their monthly disposable income, which is more than any other age group - but only 12% are using this money to save for retirement, according to research by asset manager BlackRock.

According to the Telegraph, the study revealed that 31% of 25-34 year-olds expect to retire on an annual income of more than £30,000 a year. This is higher than the national average salary, which currently sits at £26,100. To achieve a retirement income of £30,000 a year, those aged 25 today and retiring at 65 would need to put aside £4,950 a year to accumulate a pot of £599,967, assuming an annualised return of 5%. If they wait until 35 to start investing, they will have to save £9,000 - or twice as much - each year to reach the same goal at the same rate of return. The increasing...