The majority of Generation X are not confident that they will have saved enough to achieve a good standard of living after their working career, according to new research from Just Group.
Four in ten (38%) of those born between 1965 and 1981 said they were not at all confident in the adequacy of their future savings, while 10% said that they didn’t know whether they would be able to accrue enough savings to achieve a financially comfortable retirement. A further 4% said they hadn’t thought about it.
The research also revealed a deep disparity between those who own their own home and those who rent, with homeowners significantly more confident (54%) that they will build up sufficient pension savings for a good standard of living in retirement, compared to 33% of renters.
Many of Generation X face the financial burden of helping family, with nearly a third (29%) financially supporting their adult children and 11% financially contributing to the care costs of their parents or elderly relatives.
Stephen Lowe, group communications director at Just Group, said: “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.”
