UK adults believe they need an average after-tax household income of more than £42,000 a year to feel financially secure in retirement, although expectations vary significantly by age and region, according to research from Mattioli Woods.

The YouGov research, commissioned by the wealth management and employee benefits firm, found that adults expected to need an average of £42,456 a year, or £3,538 a month, in today’s money to live comfortably in retirement.

However, younger adults reported significantly higher expectations, with those aged 18 to 24 believing they would need £55,272 a year.

This compared with £36,252 among those aged 55 and over, representing a difference of £19,020.

Regional differences were also pronounced, with Londoners expecting to need the highest retirement income at £53,292 a year.

This compared with £46,416 among respondents in the West Midlands and £44,388 in the South East.

At the other end of the scale, respondents in the North East estimated they would need £32,232 a year, £21,060 less than those in London.

The research also found that respondents expected to retire at an average age of 65, although this varied by region.

People in the South East and South West anticipated retiring at 67, while London respondents expected to retire at 64.

Alongside differences in income expectations, 40 per cent of respondents identified rising living and housing costs as one of the biggest threats to their long-term financial security.

Almost four in 10 (39 per cent) cited unexpected health or long-term care costs, while 33 per cent were concerned about being unable to work or losing income.

In addition, 26 per cent identified running out of money in later life as a concern, while 25 per cent highlighted unexpected major expenses or financial responsibilities towards family members.

Mattioli Woods wealth management director, Davinder Grewal, 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.”

Grewal stressed that there is no universal retirement income target, and the amount required depends on individual circumstances, financial commitments and desired lifestyle.

“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,” he added.

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