A new survey has highlighted the concerns of the so-called Generation X – those born between 1965 and 1980 – over whether they will have enough income in retirement.
Research by the International Longevity Centre – a think tank that considers the impact of increased longevity on society – shows that 57% of people in Generation X would like to increase their retirement savings but find it difficult to do so.
37% of members of this age group plan to carry on working after their state retirement age, with 17% saying they will carry on working full-time after the relevant age. This is despite large numbers of respondents expressing concern over whether it will be practical to continue working into their state retirement period – 59% are concerned about whether their physical health will allow them to do this, while 31% are concerned about a deterioration in mental health and another 31% are worried about the possibility they could experience age discrimination at work.
The Centre also has particular concerns over the retirement prospects of self-employed members of Generation X. This is highlighted by the fact as many as 78% of self-employed Gen Xers are struggling to afford the level of contributions required to sustain a comfortable retirement. Furthermore, 39% of them have seen a reduction in the amount of work available as a result of Covid-19.
To address these issues, the ILC calls for the introduction of a 30% flat rate of pension tax relief. It also proposes a Sidecar Savings Scheme for the self-employed, where they can make contributions into an accessible savings account, then once they have saved enough for a normal emergency fund, any additional payments can be automatically transferred into a pension plan.