The changing financial pressures facing members of different Generations is a recurring theme with the narrative usually proclaiming how younger generations have lower income, and less assets and prospects than their older counterparts. However, there has been relatively little consideration of potential retirement woes facing people born between 1966 and 1980 – Generation X.
Limited time to plan
This group has between 12 and 28 years left to work and build up a sufficient pension pot. A recent report* suggests they are at greater risk of reaching retirement with insufficient income. This partly reflects 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
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 is now imperative for members of Generation X 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. If you have concerns about the adequacy of your pension, get in touch.
We’re here to help
Would you like to ensure your pension pot can fund your retirement dreams? Clifford Osborne are Independent Financial Advisors (IFA) specialising in Pension Advice. We always offer a free initial pension review, so please don’t hesitate to get in touch to book yours.
We are based in Eastbourne, East Sussex, but during the current situation, we are successfully carrying out meetings online with our clients.
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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.
It is important to take professional advice before making any decision relating to your personal finances. Information within this blog is based on our current understanding of taxation and can be subject to change in future.
It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK; please ask for details. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor.
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.
If you withdraw from an investment in the early years, you may not get back the full amount you invested. Changes in the rates of exchange may have an adverse effect on the value or price of an investment in sterling terms if it is denominated in a foreign currency. Taxation depends on individual circumstances as well as tax law and HMRC practice which can change.
The information contained within the blog is for information purposes only and does not constitute financial advice.
The purpose of the blog is to provide technical and general guidance and should not be interpreted as a personal recommendation or advice.
*Pensions Policy Institute, 2019
