Less than a third (28 per cent) of Gen X are on track to meet their retirement savings goals that would enable them to live 'comfortably' through retirement, according to research from Get Britain Pension Ready.

The research found that 40 per cent of overall respondents reported being on track with their retirement savings goals, including 50 per cent of Gen Z, 47 per cent of Millennials, and 37 per cent of Baby Boomers.

Nearly two-thirds (65 per cent) of Gen X said they no longer have access to defined benefit (DB) pension schemes, despite 45 per cent stating they were available when they first entered the workforce.

Get Britain Pension Ready said its research highlighted that Gen X face a more “complex” retirement planning process than other generations, due to many missing out on DB pension schemes.

Almost a third (30 per cent) of Gen X respondents said auto-enrolment was not introduced in time to make a “significant” difference in their overall pension savings.

The research also found that 17 per cent of Gen X were worried about never being able to fully retire, with a majority (78 per cent) indicating that they would not have enough money saved to do so.

As well as an overall lack of savings, the other leading reasons why Gen X doubted they would be able to retire included feeling as though the cost of living would be too high (66 per cent) and believing the state pension would not be sufficient or available (59 per cent).

The survey found that over a quarter (26 per cent) of respondents across all age groups indicated they would need upwards of £500,000 to live comfortably in retirement.

The majority (80 per cent) of all respondents said they would welcome a guaranteed income if it meant they would receive a regular income for the rest of their life in retirement.

However, when respondents across all generations were asked about their understanding of the pension options available to them, 31 per cent said they were unaware of what annuity products are or what they do.

Over half (58 per cent) of all respondents reported that the entire financial retirement process felt like navigating a “complex minefield” due to their lack of knowledge, up from 57 per cent in last year’s survey.

Commenting on the research, Get Britain Pension Ready independent expert, Rotimi Merriman-Johnson, said the findings highlight a “stark” challenge for Gen X, who were disproportionately at risk of falling short in their retirement savings.

“The phasing out of final salary schemes, combined with the delayed introduction of auto-enrolment, has created a unique gap that has left many feeling unprepared,” he continued.

“Additionally, a significant number of people feel the entire process of retirement planning is overwhelming and complex, which only adds to the barriers they face in securing a stable financial future.
 
“However, it’s important to stress that it’s never too late to take action. By accessing the right tools, individuals can gain clarity about their current position and start making informed decisions to bridge the gap.

“The key is both education and proactive planning, steps that can empower Brits to take control of their financial futures and move closer to the retirement they deserve.”

Get Britain Pension Ready ambassador, Angellica Bell, added that the cost of living rising, balancing daily expenses and pension contributions with their long-term savings and retirement dreams has left many Brits unsure if and when they will be able to retire comfortably.

Annuity Ready commercial director, Sarah Lloyd, emphasised that education is such a “fundamental” part of pension preparedness, and the earlier people get the information they need to start planning for retirement the better.

---