The majority of Generation X savers are not confident they will have saved enough to achieve a good standard of living in retirement, according to new research.
This survey, by Just Group, focuses on those born between 1965 and 1981, and its finding show widespread difficulties for this age cohort.
Overall four out of 10 of this age group said they “were not at all confident” about the adequacy of their retirement savings, while one in 10- didn’t know whether they would be able to save enough for a financially comfortably retirement, while 4 in 10 said hey had not thought about this issue at all.
However Just Group found that homeowners were more confident they would enjoy a good standard of living in retirement — potentially reflecting a reliance on housing equity to partly fund retirement costs.
The research also found that nearly a third (29 per cent) of Gen X are financially supporting their adult children – aged 21 and over – and one in 10 (11 per cent) are contributing to the care costs of their parents or elderly relatives — highlighting the extent of demands on their income and savings, which have left many people unable to prioritise their own retirement savings.
Just Group communications director Stephen Lowe says: “Our research focused on Gen X – or Generation Anxiety – has uncovered their fears that they will have to work longer, pay off their mortgage for a longer period and now it highlights concerns that they won’t build up adequate pension savings.
“It is clear that Gen X are feeling squeezed – their pensions are less generous, their mortgages are more costly, and many are supporting their children financially with some also helping with later life care fees. In this environment with the cost of living crisis tightening budgets further it is perhaps unsurprising that people feel unable or unwilling to increase pension contributions.”
