Are you part of the lost generation of savers?

Recently Enable’s IFA’s in Bishops Stortford noticed articles drawing attention to “A lost generation of savers aged 35-to-45” - some believe that are going to be the worst prepared for retirement.  This is the swathe of people stuck between “millennials” and “babyboomers.” Babyboomers have retirement sorted out owing to historically more generous workplace pensions and defined benefit (DB) schemes that pay out a multiple of years worked and a percentage of final salary as income for the rest of an employees’ life. And the younger generation of millennials are saving early thanks to auto-enrolment, so they should be in a strong financial position when they reach retirement with decades of savings behind them.

But Holly Mackay of Boring Money, has warned that those aged 35-to-45 are not saving enough considering the reduced amount of time they have until retirement. Her survey found that of the 35-to-45 age group, just 22% were saving into a private pension. ‘There is a lost generation of 35-to-45 year olds who are rubbish with money,’ she said. ‘You have the swotty millennials who are saving money and planning, and the babyboomers, [but those in the middle] assume that the job is done because they are making workplace contributions but the contribution rates are too low.’

Jamie Jenkins, pension expert at Standard Life, agreed that there is an emerging ‘lost generation’’ he also said, “that prior to auto-enrolment, the Department for Work and Pensions estimated 10 million were not saving for retirement and now, despite more people saving, there are between 10 million and 13 million people who are not saving enough even with auto-enrolment.”  Enables IFA’s in Bishops Stortford know that the only solution for those who fall into this gap between the two generations is to save more into workplace pensions now, top up later, or work longer, we can help you talk through saving more.


Issued by: Enable Independent Financial Life Planners 
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
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