The average pension and investment savings of generation X are not enough to fund even a modest retirement, research carried out by Dunstan Thomas has found.
Dunstan Thomas' research found the typical 40-55 year old UK resident has £71,591 saved in non-pension investments.
This compares with £63,809 for those aged 39-41 and £78,375 for older generation Xers aged 51 to 54.
According to Dunstan Thomas gen Xers have more than twice as much money held in their pension than they have saved as non-pension investments, however they still do not have enough put away to fund even a modest retirement.
The average pension savings of UK gen Xers is valued at £159,837 and the typical person in that age group contributes £200.60 per month to their pension.
Generation X use a myriad of pension types. More than a quarter (27%) have a minimum auto-enrolment pension, the same number (27%) have a defined benefit pension and less than a fifth (17%) have a tradition defined contribution workplace scheme.
One in five (20%) gen Xers use a self-invested personal pension or other personal pension and 10% claim to have no pension whatsoever.
Research by the Institute and Faculty of Actuaries suggested gen Xers need to put £799 per month into their pension to afford the Pensions and Lifetime Savings Association's moderate retirement lifestyle income target of £10,200 per year.
Dunstan Thomas' research, however, found gen X are putting just 25% of the recommended target into their pensions each month, falling short by around £600.
Even if the declared investment and savings wealth sitting outside pensions is combined with their pension assets, the average Gen Xer has only saved a third of what they need to, to enjoy a modest lifestyle in retirement.
Not using advisers
In addition, most (84%) gen Xers are making key financial decisions alone or together with their partner, while nearly half (44%) do not consult anyone at all.
Around a fifth (21%) of those aged 40-55 source supporting financial information from financial comparison sites, while 13% rely on the national media's personal finance pages and the same percentage go to friends and family.
Just 9% of those surveyed have consulted a financial adviser in the last 12 months.
Dunstan Thomas director of retirement strategy Adrian Boulding said: "What is quite alarming is that only 5% of this group look to be anywhere near on track.
"The real surprise then is that this is not already a national scandal. One in four gen Xers looks set to rely entirely on the State Pension for income in retirement and nearly two thirds are already resigning themselves to working longer than originally planned or cutting their living costs substantially in retirement."
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