The pensions net may be widening, but there are growing concerns that even this may not be enough to stop the looming pensions crisis, with research from Learn to Trade finding that only 11% of 35-54 year olds are confident that they'll be financially secure throughout retirement.
The research went on to reveal that just 4% are confident that the state will support them in retirement, yet despite this, 43% aren't saving for retirement in any way, which could lead them open to pension poverty when the time comes to say goodbye to the workplace. Unfortunately, this may not change anytime soon, with another 43% believing that they'll never have enough money to put in a pension.
This means that the UK could be facing a pension crisis by 2028, said the report; under-55s appear to have given up on saving for retirement, meaning Generation X are approaching retirement age without a pension pot to match the cost of living, and are concerned for their financial futures as a result.
The picture looks even bleaker for those who can least afford to save: 56% of those classified as working class (in social group C2DE) aren't saving at all for retirement, compared with 34% of those in the middle class (ABC1), a significant difference.
Then there's the gender divide, with 47% of non-retired women not saving at all compared with 39% of men; they're also more likely to have given up on having a private pension (30% vs. 26%) and are harder hit by living costs (24% vs. 22%), which means they're far more likely to be worried about their financial security in retirement, with 56% of women concerned compared with 46% of men.
"We would encourage all Brits – and in particular Gen X – to be evaluating how they can best plan for their future," said Greg Secker, CEO at Learn to Trade. "With a growing lack of confidence in private pensions and their vast deficits, Brits should be looking at alternative methods of securing their financial future … Our advice is to start future planning as soon as your disposable income allows you to do so."
The only way to prevent your own personal pensions crisis from happening is to start saving, ideally through a workplace pension so you can benefit from employer contributions and tax relief. Hopefully you've already been automatically enrolled, and if not, legislation means you soon will be, giving everyone the chance to save for retirement.
But this isn't the only option; the research went on to reveal that a third of Gen X are considering alternative methods of long-term saving, including investing in shares and bonds, and a stocks & shares ISA could be a great place to start.
These tax-free accounts offer the potential for far better returns than if you saved in cash, and as they're for long-term investing, there's time to weather out any volatility in the market. They could be a great addition to your retirement savings portfolio, so find out more about them here.
No matter how you choose to save, the key thing is to get started! Compare the best savings accounts if you'd rather stay in cash, and find out more about automatic enrolment for workplace saving potential.
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