A concerning new report has highlighted that Generation X—those born between the mid-1960s and early 1980s—are facing a looming retirement crisis, with many at risk of falling into poverty in their later years.
Experts warn that this generation, often overlooked in discussions about financial security, is particularly vulnerable due to a combination of economic instability, stagnant wages, and insufficient pension savings. Unlike their Baby Boomer predecessors, many Gen Xers have been hit hard by financial crises, including the 2008 recession and the more recent pandemic.
Why Generation X Is Struggling
Several factors contribute to this worrying trend:
- Pension Gaps: Many Gen Xers entered the workforce just as traditional final salary pensions were being phased out, leaving them reliant on less generous defined-contribution schemes.
- Rising Costs: Soaring housing prices and the cost of living have made it difficult for this generation to save adequately for retirement.
- Care Responsibilities: Often dubbed the 'sandwich generation,' many are financially supporting both ageing parents and adult children, further straining their resources.
The Looming Crisis
Without significant policy changes or personal financial adjustments, experts predict that a substantial portion of Generation X could face retirement poverty. Unlike younger generations, who still have time to adapt, many Gen Xers are nearing retirement age with little room for recovery.
Financial advisors urge those affected to seek professional guidance and explore options such as increasing pension contributions, downsizing homes, or delaying retirement where possible.
