The typical 40-55-year-old UK resident has just £71,591 saved in non-pension investments, according to a new study produced by Dunstan Thomas.
Analysis by the pensions software specialists shows that younger Gen Xers aged 39-41 are the least likely to have significant non-pension investments, with most having just £63,809 on average. Meanwhile, older Generation Xers, aged 51 to 54, tend to have around £78,375.
Thankfully, most savers in this age group have more than twice as much money held in their pensions. The average pension savings of UK Gen Xers is valued at around £159,837, with the average saver contributing £200.60 per month to their pension.
However, the experts at Dunstan Thomas fear that many in this generation do not have enough put away to fund a modest retirement.
Separate research by the Institute and Faculty of Actuaries suggested people of this age group needed to put nearer £799 per month into their pension to afford the Pensions and Lifetime Savings Association’s moderate retirement lifestyle annual income target of £10,200.
Based on the Dunstan Thomas figures, this means that most are only putting away about 25 per cent of their recommended target for their age group.
The research also showed that the majority of Gen Xers (85 per cent) are making key financial decisions alone or together with their partner without seeking expert financial advice.
In fact, just eight per cent of respondents in the study have consulted a financial adviser during the last 12 months.
Dunstan Thomas’ Director of Retirement Strategy, Adrian Boulding, said: “What is quite alarming is that only five per cent of this group look to be anywhere near on track.
“The real surprise then is that this is not already a national scandal. One in four Gen Xers looks set to rely entirely on the State Pension for income in retirement and nearly two-thirds are already resigning themselves to working longer than originally planned or cutting their living costs substantially in retirement.”
The contents of this article are for information purposes only and do not constitute individual advice.