A third of Gen Xers not confident they can fund their retirement
With 57% of Gen Xers wanting to save more for retirement but struggling to do so, a quarter (25%) plan to work part-time past the State Pension Age (SPA) to plug an expected income shortfall in retirement, while 17% plan to work full-time. However, they have serious concerns about whether they will be able to continue working later in life.
The findings, which are contained in a report from the International Longevity Centre (ILC) show why many people in Generation X continue to be ‘Generation Vexed’.
As many as 37% of all Gen Xers plan to work later in life to boost their retirement income, while for 25% this is their only plan.
However, they have several concerns they fear will constrain their ability to do this:
59% are worried poor physical health will restrict their ability to work
31% are concerned poor mental health will impact them
31% fear age discrimination will restrict their ability to retain or find another job
Other concerns include not having the right skills to adapt to the changing job market (19%) and a fear that the economic impact of the pandemic will make it harder to remain in work (17%)
These concerns are perhaps understandable, especially as 36% of all Gen Xers, and one in three (33%) of those whose only plan for retirement is to work longer, also have a health problem or a disability.
Meanwhile, almost two-thirds (62%) of those who plan to work past the SPA to address an income shortfall in retirement are confident they’ll be able to do so – but they may find this is not always possible as a quarter (25%) of this group currently have a health problem or disability, and some 7% expect to provide care to an adult in the next five years.
Source data:
[1] All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 6,035 adults aged 40-55. Fieldwork was undertaken between 13 – 24 November 2020. The survey was carried out online. The figures have been weighted and are representative of all UK adults aged 40-55. Calculations based on survey stats calculated by ILC. All references and methods are available in the full report, which can be downloaded here: https://ilcuk.org.uk/slipping-between-the-cracks/
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