Pension woes: the tale of Gen X

21st May 2020

The changing financial pressures facing members of different intergenerational groups has been a recurring theme in recent years, with the narrative usually proclaiming how younger generations have lower income, assets and prospects than their older counterparts. However, there has been relatively little consideration of the potential retirement woes facing people born between 1966 and 1980 – Generation X.

Limited time to plan

Members of Generation X have between 12 and 28 years left to work and build up a sufficient pension pot to fund their post-working years. A recent report2 suggests this group is at greater risk of reaching retirement with insufficient income. This partly reflects an array of changes in the labour market and pension landscape, as well as a challenging economic climate, which have combined to increase the complexity of preparing for later life.

Challenges facing Gen X

A number of specific issues have also placed Generation X at risk of reaching retirement with inadequate funds. The decline in private sector defined benefit provision means a large proportion of this group will rely on defined contribution schemes, while they are also likely to receive a lower State Pension income than their predecessors. Additionally, automatic enrolment came too late for this group to benefit fully as most were in their late thirties or over when it was introduced.

Still time for action

While it’s imperative for members of Generation X to make time now to consider their pension needs, it’s never too late to start saving for retirement. Diligent planning now could make all the difference to securing a comfortable future. So, if you have concerns about the adequacy of your pension, get in touch. We’re here to help.

2Pensions Policy Institute, 2019

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.