New research has concluded that finds some Generation X ‘sub-groups’ (born between 1965 and 1980 approximately) could suffer financial hardship during retirement.
The report conducted by UK-based charity The International Longevity Centre (ILC), entitled ‘Slipping between the cracks? Retirement income prospects for Generation X’, found that mounting financial hardship, a volatile income, and competing responsibilities, mean 57% of Gen Xers wish to save more for retirement, but can’t.
The report, which is based on a national survey, found that nearly one third of Gen Xers run the risk of reaching retirement age with an insufficient income, and one in five are saving less due to the Coronavirus pandemic.
“A big group of Gen Xers are banking on working for longer to make up for their shortfalls in savings,” said Sophia Dimitriadis, the report’s author.
“But working longer simply won’t work for all. And we know that especially following the pandemic, lots of people could face long-term unemployment or even early retirement forced upon them when they can least afford it.”
Those groups particularly vulnerable to risk include people who are on benefits; the unemployed, renters, those with poor health, the self-employed and carers, among others.
“It’s not too late for government to intervene to support those most at risk of poor retirement outcomes by changing default contributions, by making the right choices easy and by putting people in control of their finances,” Dimitriadis adds.
In addition, data published by the ONS in May this year revealed that although the impact of Covid-19 was greater for younger workers, older workers aged 50 years and over had been affected to a greater extent than middle age groups.
Housing costs, debt, and low wages are also preventing Gen Xer’s from saving adequately, according to the ILC, and the psychological of consequences means many feel too overwhelmed to think about retirement planning.