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Generation X falls behind on retirement savings: how to boost your pension pot
The over-50s are lagging behind other generations when it comes to pension savings – here’s why
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(Image credit: Getty Images/MoMo Productions)
Marc Shoffman
29 September 2025
Generation X – savers over the age of 50 – have been identified at most risk of a retirement shortfall and face being the first generation with lower financial security than their predecessors, research suggests.
Analysis by PensionBee shows pension savers over age 50 are least prepared for retirement compared with other generations.
According to PensionBee’s 2025 Pension Landscape, women over age 50 hold an average of £30,644 in their retirement savings compared with £54,512 for men in the same age group.
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The gender pension gap is just one aspect of the issue though.
PensionBee’s calculations suggest that, on average, Generation X savers will be left with a retirement pot worth £88,444 based on 5% annual growth if they want to retire at 66.
Other generations have age and time on their side.
Savers under 30 could have a pot worth £181,165 by the time they are 66 based on the typical size of the generation’s savings and the same investment performance.
This rises to £178,439 for those in their 30s and £130,140 for savers in their 40s.
Why has Generation X fallen behind on pension saving?
The over-50s generation has faced a few challenges that has impacted their ability to save into a pension.
PensionBee highlights that they entered the workforce during downturns, endured stagnant wages and lived through repeated financial shocks such as the dotcom crash and the 2008 financial crisis, both of which hit their earnings and pension power.
Just as they reached their peak earning years, the Covid-19 pandemic hit, further derailing long-term planning, PensionBee said.
This cohort is also part of the so-called “Sandwich Generation” supporting both ageing parents and dependent or returning children. Faced with university fees, long-term care costs and mortgages, pensions have, perhaps unsurprisingly, fallen down the priority list.
While rising house prices have cushioned some, the lack of pension savings highlights a looming gap in retirement security.
Maike Currie, vice president of personal finance at PensionBee, said: “Generation X has been squeezed from every angle, sandwiched between caring for ageing parents and supporting children, all while weathering repeated economic shocks.
“It’s little wonder that pensions have slipped down their priority list. But the reality is that this generation is heading towards retirement with far less financial security than their parents enjoyed.”
She warned that this should be a wake-up call for policymakers and the industry to provide the tools, support and flexibility this overlooked generation urgently needs, adding: “Unless we act now, Gen X could become the first generation to retire worse-off than the one before.”
How to boost your pension pot
With the cost of a comfortable retirement estimated at £43,900 per year, the more you can have in your pension to get close to this level of income the better.
You will still have other support though such as the state pension, plus you could work for longer or find other sources of income such as buy-to-let.
There is still time to boost your pension, whatever age you are.
Money coach Benjamin Beck urged people not to dismiss small pension pots from previous jobs, adding: “Spend time tracking down your pension and keep your details up to date. I have encountered people dismissing a £10,000 pension pot. It’s your money.
“You wouldn’t dismiss a bank account worth £10,000. This is your future money, your future paycheck, so look after it so that it can look after you.”
Rob Mansfield, independent financial adviser at Roots Wealth Management, said people shouldn’t ignore their pension statement.
He added: “Don’t just file it away in the deal-with-it-tomorrow pile. Are you happy with how it’s performing? How is the fund performing compared to its benchmark? Are your death benefit nominations up to date?”
“You’re in charge of your pension but it’s easy to assume that someone else is managing it and leave it until it’s too late. Take control and if you don’t understand it, ask for help.”
Anita Wright, chartered financial planner at Ribble Wealth Management, suggested increasing pension contributions.
She said: “Boost your pension by nudging contributions up by just 1%–2% whenever you get a pay rise.
“Also, remember that holding too much in cash leaves your savings vulnerable to inflation erosion. For stronger long-term planning, build a cashflow model to map spending needs, use the 4% withdrawal rule as a guide while adjusting for inflation and market conditions, and diversify across asset classes to reduce volatility and protect your retirement income.”
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Marc Shoffman
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Contributing editor
Marc Shoffman is an award-winning freelance journalist specialising in business, personal finance and property. His work has appeared in print and online publications ranging from FT Business to The Times, Mail on Sunday and the i newspaper. He also co-presents the In For A Penny financial planning podcast.
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