Gen X worried about standard of living in retirement
Almost four in 10 Gen Xers (38%) aren’t at all confident their future pension savings would be adequate to secure a good standard of living in retirement, according to research.
One in 10 don’t know if they’ll be able to accrue enough money to achieve a financially comfortable retirement. A further 4% haven’t thought about it. Conversely, nearly half (48%) of Gen X are confident or somewhat confident about enjoying a good standard of living when they retire.
The findings come from a research project on Gen X (people born between 1965-80), by our parent company, Just Group (carried out by Opinium). It delves into the mounting financial and lifestyle pressures facing this cohort – also known as the ‘squeezed’ generation, in between baby boomers and millennials.
Andy Fryer, Head of Proposition Development at Just, said: “It’s clear Gen X are feeling squeezed – their pensions are less generous, their mortgages are more costly and many are supporting family members financially.
"Members of this generation are likely to have less DB pension provision compared with older baby boomers, and financial planning will be essential to ensure good retirement outcomes. I would recommend those with worries talk to a professional adviser, or, as a minimum, take the free, independent and impartial guidance offered by the Government’s MoneyHelper and Pension Wise.”
The Just Group research shows there’s also a gap between homeowner and renters’ expectations. More than half (55%) of homeowners surveyed are confident, or somewhat confident they’ll build up sufficient pension savings for a good standard of living in later life, compared with 33% of renters.
Among the respondents, nearly a third (29%) of Gen X help to financially support their adult children. These findings highlight the extent of demands on Gen Xers’ income and savings, forcing many to deprioritise contributions to their pension pots.
The research also reveals that only a third of those surveyed (35%) are confident they’ll be able to retire by State Pension age (currently 67) – a common trigger point for people to stop working. Nearly 4 in 10 (38%) think they’ll have to work later, while the remaining quarter (27%) are unsure.
Women are more pessimistic about their chances of being able to retire by the age of 67 than men (37% versus 40%). Among the younger Gen X (currently aged around 43-48), only 27% believe they’ll be able to retire by the State Pension age, with almost half (46%) believing they’ll have to carry on working for longer.
Nearly twice as many homeowners as renters (40% versus 21% respectively) believe they’ll be able to retire at or before the age of 67.
Official figures from the Department for Work and Pensions show retirement ages have been trending upwards since 1996. In 2023, the average age of leaving the labour market was 65.3 for men and 64 for women. Just Group’s research suggests the rise could accelerate for the Gen X demographic, some of whom will start to become eligible for pensions in around a decade.
Opinium research conducted in August 2023