A Millennial's Pension Reality Check
A 35-year-old woman has delivered a stark pension warning to her fellow millennials after facing the grim reality of her own retirement prospects. Helena Di Biase, who has no personal savings, has made only £1,000 in pension contributions throughout her working life and expects to receive no financial inheritance from her parents.
Helena, who admits she will struggle significantly once she reaches the UK's official retirement age of 68, decided to quantify her fears using artificial intelligence. She asked ChatGPT to calculate her potential retirement income.
The £2.6 Million Retirement Shortfall
The results were sobering. Helena explained in a TikTok video that to draw down an annual income of £40,000 in retirement—adjusted for inflation to maintain today's purchasing power—she would need a staggering £2.6 million saved by the time she is 68.
Compounding this financial challenge is her housing situation. "I don't own a property so I don't have a mortgage - I rent," Helena stated, highlighting that she will likely still be paying housing costs well into her retirement years. This reality leaves her with two bleak options: "I'm either looking at not retiring at that age - which is probably the reality - or I need to make £2.6 million."
The Inheritance Myth and State Pension Fears
Helena specifically cautioned her generation against relying on the 'bank of mum and dad'—a privilege she says she doesn't share. "I won't at any point get any kind of inheritance windfall from my parents because they also have no money," she revealed, adding that many millennials are banking on an inheritance that may never materialise.
She's also planning for a future where the state pension may no longer exist, forcing her to rely entirely on her own savings. "I'm also factoring in that I don't think there will be a state pension when I get to that age," she said, acknowledging she's adjusted all her calculations for inflation.
A Generation Facing a Pension Crisis
The response on TikTok revealed many shared her concerns. While some commenters suggested £40,000 was an unnecessarily high target, Helena stood firm: "It's a lot but I'm not interested in poor life retirement. It's happening to my parents and if I can control the amount I can put in then I can hopefully give it my best shot."
Other users echoed the severity of the situation. One declared: "There is a major, major crisis coming," to which Helena agreed, responding: "Absolutely which is why I need to make sure I'm not part of it!"
Another commenter warned: "There'll be a generation of people our age still paying rent or housing in our retirements," while a third confessed: "I can't afford to retire, I can't afford to save anything month to month, I'm nearly 40 and I'm dreading getting old."
However, some offered practical solutions, suggesting that self-employed individuals like Helena should consider a Self-Invested Personal Pension (SIPP) and emphasised the importance of compound interest. Helena confirmed she plans to act on this advice, stating: "I'm self employed and always have been so I'm going to be hitting the SIPP hard!"
She attributed the widespread pension problem among millennials to constantly "fighting the immediate economic fires," leaving little room for long-term planning. The government encourages individuals to check their State Pension forecast via its official website to better understand their own retirement outlook.
