The “Generation VeXed: solving the retirement puzzle” report by the PPI, sponsored by Phoenix Group, found that Generation X, meaning individuals born between 1966 and 1980, are at risk of

not achieving the same standard of living as Baby Boomers in retirement, due to changing labour, economic and market conditions. The report focused on three areas which impact on pension and

retirement plans, with these being labour working patterns, government policy, and economic factors. The research considered the impact of each of these areas on Generation X, comparing it

with the experience of Baby Boomers, as well as the expected experience of Millennials. The PPI research was based on Generation X being born between 1966 and 1980, thus aged between 39 and

PENSION A TICKING TIME BOMB AS 1.6MILLION RENTERS FACE BILLS CRISIS According to the research, 27 percent of Gen X live in rented accommodation, meaning that during retirement, a significant

proportion of income will likely be directed to property costs. Daniela Silcock, author of the report and Head of Policy Research at the PPI said: “The decline in Defined Benefit provision,

reductions to the proportion of State Pension people will receive, and an increased likelihood of renting, indebtedness and giving or receiving care in retirement mean members of Generation

X are at greater risk of reaching retirement with an income that is not adequate, or sufficiently sustainable or flexible. “While Generation X will be reaching State Pension age over the

next 12 to 28 years, there is still scope for Government, industry and employers to take collective action to help mitigate risks. “The Government could consider whether benefits could be

restructured to ensure that those renting in retirement don’t lose out on means-tested benefits, such as Housing Benefit, reducing both the incentive to save and disposable income in

retirement.” DON'T MISS Ms Silcock added: “There is still time to help Generation X achieve more positive retirement outcomes, and efforts made today should also improve the retirements

of Millennials in the future. “However, action needs to be taken now if older members of Generation X are to be able to adjust before retirement. “While some individual change will be

helpful, industry, employer and policy changes will be the most effective means of boosting Generation X’s chances of a better retirement.” Clive Bannister, Chief Executive Officer of

Phoenix Group commented: “Without taking significant action, one third of Generation X are at risk of failing to achieve more than the minimum income levels in retirement. “The reality is

that Gen X change jobs more often than Baby Boomers, are less likely to have benefited from the guarantees of a final salary pension and will not see the full benefits of auto enrolment that

millennials will see. “This all points towards lower levels of pension savings, with the added complexities of multiple pension pots. “We need to recognise that some of Gen X will not feel

in a position to take action and that there is no silver bullet for solving their retirement challenge. “However, with the right support, encouragement, and engagement, we can all help to

ensure they don’t just sleepwalk into a grey and grim retirement when there is more that could be done. “It will take a collaborative effort on the part of government, regulators and our

industry to ensure more individuals have an adequate, sustainable and flexible retirement income in the future. “Consumer initiatives like the Pensions Dashboard, which we fully support, are

an example of how we can make it easier for everyone to see their full retirement picture and know when to take action if they can.” Jenny Holt, Proposition Director at Phoenix Group said:

“Employers have an important role to play in helping their employees to understand the importance of saving for retirement, particularly from a young age. “Many employers also offer

incentives to employees such as matching contributions. “However, it’s not just the responsibility of employers, or the individual, to help ‘Generation X’ prepare for retirement, but the

government and wider industry too. “As the report shows, we all have a duty to help savers ensure they are fully engaged with their pension savings throughout their lives and know what to

consider to get the best possible outcome when they come to retire. “The report will help us further improve our engagement with consumers from all generations so they can achieve these

outcomes.”