The squeezed middle – Generation X (1965-1980) Generation X are the cohort after the Baby Boomers. Born between 1965 and 1980, they’re now aged between 42 and 57 and are referred to as the ‘Squeezed Generation’ who are likely to still be funding children either of school age or young adults, and have caring responsibilities for older parents or relatives. • Pension saving among 35-54 year olds (our data closest to Gen X) has risen to 73% under auto-enrolment however this varies in line with earnings and is highest at more than 90% among those earning £70-99k but less than 60% of those earning £10-15k are in pension schemes.12 • While many in this group would like to save more for their retirement, Gen X have faced a number of barriers to doing so including wage stagnation, insecure employment or income, combined with house price and rent inflation. • 57% reported that they would like to save more but are struggling to do so. Other financial barriers identified are prioritising debt and having too many other priorities including the cost of childcare and supporting adult children. • When asked about their attitude to savings in general, 37% said they are more keen to save generally since being auto-enrolled. However, when asked how this had influenced their attitude to pension saving. 38% reported that auto-enrolment had had no impact on their attitude to pension saving. Lastly, 30% had not thought about their retirement much or at all and only 11% felt that they were more aware of how much they needed to save to fund retirement. This squeezed generation needs increased support to prepare better for retirement. More could be done in terms of tailored guidance and information and how this is accessed to help disadvantaged groups in this age cohort to better understand how much they need to save and the options available to them. 22 A decade of auto-enrolment: has it helped or hindered saving psychology?
RkJQdWJsaXNoZXIy MjA4NTgz