Generation X or ‘Gen X’ – the generation of adults born between 1965 and 1981, roughly 45 to 60 years of age now – is woefully unprepared for now looming retirements, according to a survey of 2,000 UK adults in December 2024.
One of the most significant issues the cohort faces, according to the research from Get Britain Pension Ready, is that the group fell through the gaps in major pension reforms undertaken in the UK after the new millennium began.
The baby boomer generation largely benefitted from so-called ‘final salary’ pension schemes (also known as Defined Benefit pensions). But these schemes began closing to new entrants thanks to reforms in the pension system in the noughties.
Meanwhile, Millennials and Gen Z have benefitted from the arrival of automatic enrolment workplace pensions in the 2010s – known as Defined Contribution (DC) pensions.
But the research highlights how Gen X has fallen in the gap between these two systems.
65% of Gen X say they no longer have access to Defined Benefit schemes, despite nearly half (45%) having access at the start of their careers.
One in three (30%) say that automatic enrolment DC pension schemes began too late in their careers for them to benefit substantially from the long-term effects of accruing and investing pension savings to meet their retirement goals.
As a result, some 17% of Gen X surveyed say they are worried they will never be able to retire. Of these, 66% say the cost of living will simply be too high for their retirement savings to cover while 59% are sceptical over the availability or sufficiency of the State Pension in the future.
However, Get Britain Pension Ready is keen to emphasise that successful retirement savings outcomes are not out of reach for Gen X.
It is important for Gen X to consider all their options in the round. While they might feel their pension savings are insufficient, in work there is always the option to increase contributions or savings amounts, and they should also consider other areas where they might have accrued wealth, such as property or other savings and investments.
Rotimi Merriman-Johnson (known as Mr Money Jar), an independent expert for Get Britain Pension Ready explains: “Retirement should be something to look forward to, but our research reveals that too many members of the British public instead feel anxious, overwhelmed, and fearful of making the wrong financial decisions.”
Merriman-Johnson adds: “There’s a wide range of pension options to choose from. The industry has an obligation to provide everyone with the means to understand them and support the people of Britain to take charge of their financial futures. No one, from any background, should get left behind. We’re encouraging everyone to seek the guidance they need, to understand all the financial options available to them when they come to retire.”
If you think you might need some help to ensure you have a well-funded retirement, then please speak to us.
