Why the cupboards are bare for Gen X

The older gen X, who are 55-58 years old, may well have been the last beneficiaries of private defined benefit schemes in the UK. 

Most of these will have been able to get onto the property ladder in the late 1980s, early 1990s while the price-to-income ratio was not as wide as it is today. 

Many may already have paid off their mortgage.

But the younger generation X, who are aged between 45 to 55, are finding things a lot tougher, statistics suggest.

Early millennials who are now between 41 and 43 are also grappling with concerns over their finances, which their pre-war or early Boomer parents have not had to worry about. 

Overall, those aged 41-55 are worried that their money just won't last into retirement. 

George, I know how we can make ends meet. We'll have to stop buying necessities.

The latest Great British Retirement Survey from Interactive Investor, which was unveiled under embargo at a private meeting in the House of Lords earlier this week, showed this cohort are the most worried of all Britons about running out of money in retirement. 

More than 9,000 UK adults were interviewed; 4,801 by Opinium and the rest from Interactive Investor's own customers between May and July this year. 

Some 49 per cent of respondents aged 41-55 cited running out of money in retirement as a concern. 

Added to this, 36 per cent - more than one in three Brits in this age group - worried they were not able to save enough for retirement. 

This is a stark contrast to those aged 66 and above, where only 8 per cent said they were worried they might not have saved enough for their retirement. 

High price tags

There are number of factors, of course, not least the demise of DB pension schemes affecting those under the age of 55.

With investment risk borne by the saver themselves, and with no income guarantees, the burden of saving falls squarely onto the individual, along with the stress and worry attached to this.

Amid the cost of living crisis, 60 per cent of those aged 41-55 said the rising cost of living was their greatest concern.

But this is also the cohort most likely to have children at school or in higher education, which comes with high price tags, and a pressure to balance working hours with school hours, which I've discovered loosely follow Edwin Hubble's theory of expansion.

Gen X are also likely to be still in the stages of paying off the mortgage and possibly facing a round of remortgaging soon, at higher rates than in previous years thanks to the Bank of England wielding that hammer against inflation.

Moreover, many of them have cited caring responsibilities - for older parents or young children - as the main reason why they have had to retire or reduce their working hours. 

Again, as Interactive Investor's 52-page study shows, rising levels of unsecured debt among younger generations - as a response to the rising cost of living - also affects their ability to save. 

Pincer movement

Of course, as a Gen X, I have extreme empathy for this cohort: caught between a pincer movement of caring responsibilities that demand our time and attention at home, and financial responsibilities that demand our time and attention in the workplace.

On top of this, the knowledge that we're responsible for our own pensionhood, with the prospect of the triple lock being unpicked by the time we hit state retirement age, leaves this cohort treading a fine line between saving more and spending on necessities. 

Mortgages, education, bills, caring for parents - if we can't save more, how can we secure a more comfortable retirement in 10-20 years' time when we come to retirement age?

Will we be forced to remain in the workplace for longer, at the expense of spending time with our loved one? Is that the economic trade-off?

Spending a couple of hours talking to an adviser for a few hundred pounds now might be a financial lifeline to many.

Not to mention ill-health, which according to Interactive Investor is the reason 22 per cent of Brits aged 55-65 said they were leaving the workforce. 

I don't know what the answer is for the majority of Gen X. We'll have to muddle through, somehow, saving more where and when we can, and keeping on top of the costs.

Certainly help with tax and pension saving strategies, especially for the self-employed among us, will be vital. 

I remember seeing a cartoon from an old 1980s Archie Comic, where Mrs Andrews is going through the household accounts and turns to her husband to say: "George, I know how we can make ends meet. We'll have to stop buying necessities". 

Advisers, if you have clients in this cohort, they're probably unlikely to be financially stressed, but perhaps you could encourage them to introduce their less well-heeled friends to you for a mid-life MOT?

Even spending a couple of hours talking to an adviser for a few hundred pounds now might be a financial lifeline to many.

It just might be the difference between Mother Hubbard retiring, only to find her cupboard bare, and her being able to keep that pampered pooch in the lifestyle to which it has become accustomed.

simoney.kyriakou@ft.com