More than half of Generation X are not confident they will have saved enough to achieve a good standard of living in retirement, research shows.
About 52 percent of Generation
The polls show that Generation
The survey found that 29 percent of them financially support their adult children aged 21 and over
Gen Z 'squeezed'
The survey found that 29 percent of them financially support their adult children aged 21 and over.
Another 11 percent said they contribute financially to the care costs of their parents or elderly relatives.
Stephen Lowe, group communications director at pensions specialist Just Group, said: 'It's clear that Gen reimbursements for life care.
Gen X feels pressured – their pensions are less generous, their mortgages are more expensive and many support their children financially.
'In this environment where the cost of living continues to tighten budgets, it is perhaps not surprising that people feel unable or unwilling to increase pension contributions.'
Separate research from Standard Life shows that 19 percent of Brits have spent sleepless nights worrying about retirement planning.
A further 15 per cent said they had poor mental health, caused by nervousness around preparing for retirement.
The Standard Life survey, which surveyed more than 6,000 people, found that 9 percent have had an argument with their partner or family over their retirement planning.
Another 7 percent even needed leave.
Despite this, 62 percent have not sought advice or help, rising to 74 percent for those aged 55 to 64, and 75 percent for those aged 65 and over.
> Afraid that your pension will fall short? Scroll down to see what you need to do
Dean Butler, managing director of retail direct at Standard Life, said: 'Preparing for retirement can be a challenge, involving some big decisions. Figuring out how much money you'll need to build up when you stop earning and deciding how and when to access it is no easy task.
'Retirement is also a huge life event and choosing when to take the plunge means thinking about your expectations for later life as a whole.'
In the early 2000s, the percentage of people who had retired by the time they reached ages 55 to 64 was pretty similar, no matter how well off you were. according to the influential think tank the Institute for Fiscal Studies.
But early retirement is increasingly the domain of the wealthy, unless you are forced to give up work because you become permanently ill or disabled, or if you take up work as a caregiver.
Being too sick to work is much more common among the poorest fifth of the population. In England it affects 39 percent of 55-64 year olds, compared to just 9 percent of those in the middle and most affluent groups.
Butler added: 'It's always worth getting support with retirement planning. If you would like to seek financial advice, independent financial advisors can provide you with tailored advice based on your specific situation and objectives.
'There are also a number of free guidance services, such as PensionWise from the government, that can explain the options to you. Don't forget to also talk to your employer and pension provider.'
STEVE WEBB ANSWERS YOUR PENSION QUESTIONS
What to pay attention to if you are concerned about saving for your retirement
Standard Life offers the following tips for planning your life after work.
1. Think about when you want to retire
While many people are excited about the freedom retirement can provide, some worry about how they will fill their time and maintain their social connections.
Many employers and pension providers offer schemes to prepare for this, and there are some online communities such as The Joy Club to meet like-minded people as retirement age approaches.
2. Get to know your pension options
Deciding how to use your retirement savings can be one of the most confusing decisions you have to make. Normally you can withdraw your money as flexible income (withdrawal); as one or more lump sums; or use it to buy a guaranteed income for life (an annuity).
You can also combine these options depending on your needs. You should check with your provider whether your pension scheme offers the desired options. If not, you may need to switch to another operator, although this may not be suitable for everyone.
It is important to decide how and when you will access your money. You may therefore want to seek expert advice.
3. Calculate how much money you will need when you retire
'It is important to determine what your ideal annual income is when you retire. This amount depends on your lifestyle and goals. For example, you may want to go on holiday abroad or make some improvements to your home.
'You can find out more about how much you need by consulting the Retirement Living Standards, published by the Pensions and Lifetime Savings Association.'
4. Check if your savings can support your lifestyle
You then need to consider whether your savings can support your ideal lifestyle. The best place to start is to check the value of your pension plans and what they could be worth in the future. You can do this with the help of a pension calculator.
Some people supplement their retirement savings with things like income from part-time work, rental properties or other savings, but everyone's circumstances are different.
By thinking about your own financial situation and planning accordingly, you can ensure your money lasts as long as you need it.”
5. Track down lost pension pots
If you've had a job that included a pension scheme, check that you haven't 'lost' these pots of money. To help you track your pots, you can use the government one Pension Tracing Service.
Finding your pots and combining them into one plan with a pension transfer can give you a clearer picture of how much you currently have in pension savings, and help you plan for your retirement, but you should seek advice if you are interested in that.
Some links in this article may be affiliate links. If you click on it, we may earn a small commission. That helps us fund This Is Money and keep it free to use. We do not write articles to promote products. We do not allow a commercial relationship to compromise our editorial independence.