Retirement saving is slipping further down the nation’s list of financial priorities, with research from St. James' Place warning that a widening 'ambition gap' risks leaving more people financially vulnerable in later life.

The findings, from the final chapter of the firm’s Real Life Advice Report, revealed that just one in 10 adults now cite retirement saving as a key financial goal, both over the next year and the decade ahead, as short-term pressures continue to dominate people’s thinking.

Notably, it showed that nearly one in four (24 per cent) adults have no financial aspirations at all for the next 10 years, up sharply from 17 per cent just six months earlier.

Over the shorter term, more than one in five (21 per cent) - equivalent to around 11.6 million adults - admitted they have no financial aspirations for the year ahead, compared with 13 per cent in July.

The report suggested sustained cost-of-living pressures and economic uncertainty were eroding confidence in long-term planning, with retirement saving a particular blind spot.

While saving more remained the most common ambition across all timeframes, cited by 40 per cent over the next 12 months, prioritising retirement had fallen back.

Only 9 per cent said building retirement funds was a priority over either the next year or the next decade, down from 11 per cent and 15 per cent respectively in July.

The 'ambition gap' was widening across all age groups, but was most pronounced among those aged 55 and over.

More than a third (36 per cent) of this cohort reported having no financial aspirations, up from 25 per cent six months earlier.

Among 35-54 year olds, the proportion doubled from 7 per cent to 14 per cent, while even among 18-34 year olds it rose from 3 per cent to 8 per cent.

Meanwhile, regional disparities also remained stark.

Northern Ireland, the North East and Scotland consistently recorded the highest proportions of people with no financial aspirations across all time horizons, with more than a third in Northern Ireland (37 per cent) saying they had no goals even when looking 10 years ahead.

By contrast, just 14 per cent of adults in London reported having no long-term financial aspirations.

Commenting on the findings, St. James’s Place chief executive officer, James Rainbow, warned that financial pressures were pushing long-term goals “on the back burner”, with potentially serious consequences for retirement outcomes.

“That erosion of confidence - not just in the immediate future, but even when looking five or 10 years ahead - is concerning as the longer people delay, the harder it becomes to achieve the future they expect,” he continued.

“This is particularly evident when it comes to retirement, with comfort in later life in more doubt as retirement saving slips down priority lists.”

The research also highlighted the impact of professional advice on long-term planning.

Those receiving ongoing financial advice are more than twice as likely to have a financial plan with clear goals and timelines (68 per cent, compared with 32 per cent of those without advice), and were significantly more likely to prioritise long-term ambitions.

Advised individuals are also more likely to include retirement in their plans.

Indeed, almost one in five (18 per cent) of those receiving ongoing advice saw retirement funding as a priority over the next decade, compared with 13 per cent of those not advised.

Over the next 12 months, 19 per cent of advised individuals prioritised retirement, versus just 8 per cent among the non-advised group.

Rainbow noted that targeted support and advice would be increasingly important in preventing retirement from being overlooked amid short-term financial pressures, adding that “advice will play a critical role in ensuring long-term goals, particularly retirement, are not forgotten”.

---