S&P Opinions

22% of Gen Xers Have No Pension: Can They Retire?

By March 23, 2020 April 2nd, 2020 No Comments
Gen X Pensions

Gen Xers are facing a serious financial crisis when it comes to preparing and planning for retirement. According to a Dunstan Thomas study published in the Pension Age Magazine, over 22% of Gen Xers have no pension. To make matters worse, 10% of Gen X adults don’t know what (if any) retirement savings they hold.

If you’re a Gen Xer who hasn’t thought about planning for retirement, you aren’t alone. Book a no-obligation consultation with Shalchi & Partners to learn how you can start saving for retirement and plan for your future. We understand that you won’t be working forever, so allow us to help you enjoy the finer things in life without stressing about your pension.

Who is the Gen X Age Group?

Gen Xers are those who were born between 1965 and 1980 and are currently between 40 and 55 years of age. Dunstan Thomas interviewed 2,011 Gen Xers between the ages of 39 and 54 for their nationwide study and found that a Gen Xer’s average pension savings totalled £159,837, which shows that they’re currently making an average contribution of £200.60 per month to their pension. Surprisingly, 29% of Gen Xers have never paid more than the minimum contribution amount.

Gen X Pension Statistics by Gender

The average Gen X woman has £117,854 in her pension, which is 38% less than her male peer. She makes an average contribution of £139 per month to her pension.

The average Gen X man makes an average contribution of £253 into his pension, which is 45% more than his female opposite.

According to Dunstan Thomas’ Director of Retirement Strategy, only 5% of Gen Xers are anywhere close to being on track for retirement, regardless of their gender. In fact, 1 in 4 Gen X adults completely rely on their State Pension as their source of income during retirement. Sadly, 40% of Gen Xers don’t even know if they’ll fully retire.

Types of Gen X Pensions

According to the study:

  • 27% of Gen Xers have an auto-enrolled pension
  • 27% have a Defined Benefit (DB) pension
  • 12% have a Defined Contribution (DC) pension
  • 20% have self-invested in a personal pension

Those with a DB pension reported an average total pension value of £251,978. The amount of Gen X adults with a DB pension who were considering transferring to a DC pension (either fully or partially) to gain access to their funds at age 55 totalled 63%. It was also stated that 13% of 51-54 year olds had no plans of touching their pension in the next five years, with 12% stating that they weren’t sure.

Additional Gen X Pension Statistics

  • 36% of Gen Xers are planning on working beyond their planned retirement age
  • 31% are willing to become poorer once they retire
  • 6.3% will move abroad to reduce the cost of living
  • 26% are planning on increasing the amount they save each month before retiring

Contact us to learn more about our Pensions & Retirement service and start preparing and planning for your future today. We make retirement finances simple.

Disclaimer: Shalchi & Partners Limited is authorised and regulated by the Financial Conduct Authority. The value of investments can go down as well as up.