A recent survey from Standard Life has found that more than half (54%) of Gen X worry that they haven’t saved enough for retirement. Just under half (45%), meanwhile, are expecting their living standards to fall when they finish work.
While undoubtedly worrying, this lack of confidence doesn’t have to translate into reality, especially with most Gen Xers still some way away from their retirement date.
Keep reading for three important pension tips to consider in your 40s and 50s, to help ensure you can live the retirement lifestyle you dream of.
Generation X are generally worried about a pension shortfall but there’s still plenty of time to act
The Standard Life report found that 54% of those aged 44 – 59 are worried about the value of their retirement savings. This compares to just 31% of Baby Boomers (aged 60 – 80).
Gen X also compared unfavourably to Millennials (aged 28 – 43). While 45% of Gen X anticipate falling living standards in retirement, just 29% of Millennials answered likewise.
The report goes on to suggest that these discrepancies could result from a perfect storm of changing pension trends and legislation.
As a Gen Xer, you might’ve largely missed out on the so-called “gold standard” of retirement saving – the final salary (or defined benefit) scheme. These schemes have largely been replaced by defined contribution schemes.
You were also deep into your career before auto-enrolment arrived. This might have affected the amount you have saved, especially compared to Millennials, when they reach the same stage of their careers.
Thankfully, there are some steps you can take to help.
1. Revisit your current plans and ask yourself some key questions
If you’re worried about your retirement savings, the first thing to do is revisit your current plans. Ask yourself these important questions:
- When do I want to retire?
- What will my retirement look like?
- When can I afford to retire?
Your plans may have changed since you first sat down to think about retirement. That’s not a problem, but you will need to factor any changes in.
Think about what you want your retirement to look like. That means the lifestyle you want to live and its associated costs. If, like those surveyed, you have concerns about a potential shortfall, now is the time to act.
2. Check in with your current provisions, including your State Pension
The pensions you hold are likely to be your main source of income in retirement so be sure to check in with them, even if your retirement date is still a decade or more away.
Ask your provider for valuations and quotations and speak to us if you think you might want to increase your contributions. We can help you put a plan in place that is affordable, allowing you to live the life you want in the present while building a financially secure future.
Also, be sure to check in with your State Pension. You can currently claim this from the State Pension Age of 66 but this is due to rise to 67 between 2026 and 2028 and then to 68 between 2044 and 2046.
To qualify for the new full State Pension, you’ll need 35 qualifying years of National Insurance contributions. For the 2025/26 tax year, the full amount stands at £230.25 or £11,973 a year.
Use the government website to check your National Insurance (NI) record to see how much you might receive and leave yourself plenty of time to fill in any gaps.
3. Make up any shortfall to keep your retirement plans on track
Checking in with your retirement planning in your 40s and 50s means you have plenty of time to make changes if they prove necessary.
This might mean filling in gaps in your NI record or increasing contributions to your private or workplace pensions. In the case of the latter, it might pay to talk directly to your employer. You might find, for example, that if you increase your auto-enrolment contribution your employer will be willing to match your rise.
You might also discuss the possibility of salary sacrifice. This won’t necessarily increase the size of your pot but could increase your take-home pay, leaving you with more disposable cash. You might channel this into other tax-efficient vehicles like your ISAs, which you can use to supplement pension income in retirement.
Get in touch
At Fingerprint Financial Planning, we can help to ensure that your retirement plans remain on track for the duration of your accumulation phase. That might mean tracking your investments or helping you to accrue non-pension wealth that can be drawn from in retirement.
Your 40s and 50s are the perfect time to check in with your pensions as you’ll still have plenty of time to make necessary changes. You might also find that your life – and so your circumstances and priorities – have changed since you first started saving.
So, if you have any questions about your long-term retirement plans, speak to us now. Get in touch by emailing hello@fingerprintfp.co.uk or calling 03452 100 100.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance. The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
Workplace pensions are regulated by The Pension Regulator.
