UK adults believe they need an average after-tax household income of £42,456 a year to feel financially secure in retirement, but expectations vary significantly by age and region, according to new research.

The YouGov research for wealth managers Mattioli Woods found that 18 to 24-year-olds expect to need £55,272 a year in retirement, compared with £36,252 among those aged 55 and over – a difference of £19,020. Londoners had the highest expectations at £53,292 a year, while people in the North East expected to need £32,232.

The average expected retirement age was 65, although respondents in the South East and South West expected to retire at 67, compared with 64 among Londoners.

Rising living and housing costs were identified as the biggest threat to long-term financial security, cited by 40% of respondents. This was followed by unexpected health or long-term care costs at 39%, being unable to work or losing income at 33%, and running out of money in later life at 26%.

Amit Joshi, managing director of wealth at Mattioli Woods, said: “Our research highlights the very different expectations people have about the income they will need to feel financially secure in retirement. While the average figure stands at more than £42,000 a year after tax, the substantial differences between age groups and regions show that retirement means different things to different people. There is no one-size-fits-all retirement income target.

“With more than a quarter of people concerned about running out of money in retirement, it is important to look beyond a headline figure and consider how income, savings and wider financial plans can support the retirement someone wants.”

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