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\t\tGen X are at risk of a financially tough retirement\t<\/p>\n\t\t\tThursday 28 May 2026 3:59 pm
\n\t\t\t\t\t\u00a0|\u00a0\u00a0Updated:\u00a0<\/p>\n
\t\t\tFriday 29 May 2026 10:24 am\n\t<\/p>\n
\t\tGen X are at risk of a financially tough retirement\t<\/p>\n
Those born between 1965 and 1980 could suffer from weaker retirement prospects despite being deemed property rich, after failing to be included in generous pension schemes.<\/p>\n
The so-called Generation X are at risk of \u201csleepwalking\u201d into an inadequate retirement, regardless of their high exposure to property, owning twice as many buy-to-let homes as Baby Boomers, according to analysis from Rathbones.<\/p>\n
Nearly 20 per cent of Gen Xers are likely to hold a property compared to nine per cent of Baby Boomers, but they are less likely to hold tax-efficient investments such as ISAs, with 66 per cent holding one compared to 78 per cent of Baby Boomers.<\/p>\n
The recent interim report from the Pensions Commission on the state retirement in the UK identified Generation X as one of the most at risk cohorts, reflecting their unlucky timing of entering the workforce.<\/p>\n
Many stepped into employment just as the \u2018gold-plated\u2019 defined benefit schemes were disappearing. The schemes granted a guaranteed, inflation-linked income for life, removing the risk of outliving retirement savings.<\/p>\n
But they also entered as fewer employers <\/a>were offering workplace schemes and automatic enrolment changed saving for retirement.<\/p>\n Slipping through the cracks<\/p>\n While Baby Boomers benefited from generous pensions, Generation X slipped through the cracks, leading them to stockpile property rather than liquid, tax-efficient investments.<\/p>\n Rebecca Williams, Financial Planning Divisional Lead at Rathbones, said: \u201cMany Gen Xers are sleepwalking into retirement with far less financial security than their parents<\/p>\n \u201cThey came of age as defined benefit pensions were disappearing and have since faced years of stagnant wage growth and repeated financial shocks, making it harder to build robust, long\u2011term savings.\u201d<\/p>\n Williams also noted that the age group also makes up a large portion of the \u2018sandwich generation\u2019 who find themselves juggling day\u2011to\u2011day costs while supporting both ageing parents and children, meaning boosting retirement savings can be put on hold.<\/p>\n \t\t\t\t\tRead more<\/p>\n \t\t\tFTSE 100 Live: Stocks rise on Iran peace hopes; Asda and Ocado deal<\/a><\/p>\n She added: \u201cIt\u2019s perhaps no surprise that property \u2013 particularly buy\u2011to\u2011let \u2013 has been seen as an alternative route to funding retirement. But relying on property as a pension can leave retirees overly exposed to a single, illiquid asset at a time when flexibility is most needed.\u201d<\/p>\n House price conditions<\/p>\n The conditions which drove strong property returns in prior decades have also shifted, with prices rising by around 6.7 per cent a year between 1980 and 2016.<\/p>\n In London, this changes to 8.5 per cent, with both outpacing inflation.\u00a0<\/p>\n Investors today are unlikely to reap the same benefits.\u00a0<\/p>\n Since 2016, UK house prices have risen by just 3.7 per cent annually, struggling to keep pace with inflation, while London property has underperformed, rising by just 1.3% a year, to the start of 2025.<\/p>\n