Two thirds (66%) of those aged between 45 and 49 feel unprepared for retirement, new research from LV= has found.
The data also found that half (50%) of Generation X respondents are unsure about which income option they would choose upon reaching retirement.
The investment and retirement specialist said that as the oldest of this generation nears retirement age, a lack of clarity raises questions about financial preparedness and highlights the need for broader awareness of available solutions outside of traditional retirement options.
The firm said that despite fixed term annuities offering a guaranteed income stream while providing stability and flexibility, they are often overlooked when compared to traditional lifetime annuities.
Less than one in 10 (7%) Gen X said they would consider the product to fund their retirement, compared to 18% who said they would choose a lifetime annuity. Additionally, almost a third (28%) of Gen X adults said they are confused by the financial information they find, indicating a potential knowledge gap for this particular age group.
LV= said as retirement planning becomes more personalised, advisers have an important role to play in guiding those approaching retirement towards the right mix of strategies to meet their long-term financial goals for later life.
Gwen Haggo, savings and retirement sales director at LV=, said: “As Generation X approaches retirement, it’s clear that confidence remains low and their awareness and understanding of available options is limited.
“Education has never been more important, and this is a critical time for advisers to engage with clients and help them to better understand how solutions like Fixed Term Annuities can provide both flexibility and security.
“Retirement planning is not a one-size-fits-all strategy. By offering a combination of stability and adaptability, as well as access to member benefits, Fixed Term Annuities can support a smoother transition into retirement and help people to live financially confident lives.”
