It’s a common theme that many people are heading into retirement with fewer resources than they require. Recent research shows that those over 50 have significantly less than they need, with women holding an average of £30,600 compared to £54,500 for men.
Even with the introduction of auto-enrolment, could Gen X be in an even worse position? Gen X entered the workforce at a time when wages were stagnant and lived through financial shocks such as the dot-com crash and the global financial crisis. Peak earnings years for this generation coincided with the Covid-19 pandemic, further impacting their retirement plans. If you add increased university fees for their offspring and an ageing population, meaning parents live longer, it really is a perfect storm for pension savings.
It’s no surprise that pensions have potentially been overlooked, but unless action is taken sooner rather than later, Gen X could become the first generation to retire worse off than their predecessors.