1 in 3 Gen Xers (born between 1965 and 1980) will end their working lives with minimal income for retirement.

Known as the forgotten generation, they have had to face more challenges than most other generations. This includes caring for two generations. Their parents and their children. This debt-riddled financially strapped group of adults also have the largest portion of renters vs homeowners, with over a third still renting, and who will continue to do so through retirement.

Gen Xers entered the job market when final salary pensions were being phased out and before they could benefit from auto enrolment schemes.

To add insult to injury, last year about 1.6 million in the UK alone were furloughed, 1.3 million placed on reduced hours, and about half a million made redundant. *

A major intervention is needed to help this generation survive retirement. Although many want to save, they just cannot see the light at the end of the tunnel. 

Even affluent Gen Xers are worse off than affluent Baby boomers were at that age. Affluent Millennials are also predicted to be better off when they reach middle age.

Ways to increase retirement savings

• Step one - get a financial adviser to do an assessment of all your pensions to determine what your pension would be when you retire. This includes state pension, company pensions and private pensions.
• Step Two - now that you know where you stand, your adviser can determine the shortfall.
• Step three - look at ways to find spare cash to top up the shortfall.

    The biggest enemy of Gen Xers is debt preventing them from having disposable income. Try to pay off debts one at a time and you could potentially use some of that to increase your retirement funding.

    Even a small increase in monthly contributions could make a difference e.g. one less take away or eating out a month.

    Try trimming the grocery bill every month. That extra £20-30 could make a big difference if you still have 15-20 years left till retirement.

    Do you really need that expensive mobile phone contract?

    A part time job or small home business could bring in some extra cash.

    Have you thought about renting out a room, annex, or garden cottage?

Even the smallest of contributions could add up to a substantial sum with compound interest over 10-20 years. 

Take back control over your debt and speak to your financial adviser to get a debt reduction plan in place for you. This will help put more money in your retirement pot so that you can lead the kind of retirement that you dream of. [email protected]

* https://www.independent.co.uk/

Please note, the above is for education purposes only and does not constitute advice. You should always contact your deVere adviser for a personal consultation.
* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above