Generation X retirement readiness gap

New data reveals two thirds lack financial preparedness for the future

Insights from investment, protection and retirement specialist LV=, has revealed significant concerns among Generation X (Gen X) regarding the age group’s preparation for retirement. LV’s Wealth and Wellbeing research showed that two thirds (66%) of those aged between 45 and 49 feel unprepared, highlighting the need for a renewed focus on retirement planning strategies. 

LV’s data also found that half (50%) of Gen X respondents are unsure about which income option they would choose upon reaching retirement. As the oldest of this generation nears retirement age, this lack of clarity raises important questions about financial preparedness and highlights the need for broader awareness of available solutions outside of traditional retirement options.

One such solution is a Fixed Term Annuity, a product that offers a guaranteed income stream whilst providing stability and flexibility through a choice of terms. Often overlooked when compared to traditional Lifetime Annuities, Fixed Term Annuities can play a prominent role in securing peace of mind during the early years of retirement, while also giving retirees the option to revisit their financial decisions later in their retirement, if a person’s needs may have changed. 

Despite offering these benefits, only 7% of Gen X said they would consider this product to fund their retirement, compared to just under one in five (18%) who said they would choose a Lifetime Annuity. Additionally, almost a third (28%) of Gen X adults said they are confused by the financial information they find, indicating a potential knowledge gap for this particular age group, and thus the opportunity to provide clarity around personal financial planning. 

As retirement planning becomes more personalised, financial advisers have an important role to play in guiding those approaching retirement towards the right mix of strategies to meet their long-term financial goals for later life. With retirement on the horizon for the oldest members of Generation X, now is the time to ensure their later-life plans are clearly defined and firmly in place. 

Fixed Term Annuities should be considered as part of a comprehensive retirement strategy, as they offer a reliable means of bridging income gaps while preserving flexibility for future financial planning. LV’s Fixed Term Annuity can be used as a standalone retirement recommendation or used within LV’s innovative Guaranteed Income Drawdown (GID) solution, which balances the LV= Fixed Term Investment and its Smoothed Managed Funds** in one simple account. 

As well as various death benefits, such as plan protection and value protection, new Fixed Term Annuity customers also gain immediate access to LV= member benefits, like LV= Doctors Services.

Gwen Haggo, Savings and Retirement Sales Director at LV=, said:  

“As Generation X approaches retirement, it’s clear that confidence remains low and their awareness and understanding of available options is limited. 

“Education has never been more important, and this is a critical time for advisers to engage with clients and help them to better understand how solutions like Fixed Term Annuities can provide both flexibility and security. 

“Retirement planning is not a one-size-fits-all strategy. By offering a combination of stability and adaptability, as well as access to member benefits, Fixed Term Annuities can support a smoother transition into retirement and help people to live financially confident lives.”

To find out more about LV’s Fixed Term Annuity, visit LV’s Fixed Term Annuity page.

Notes to Editors

• For more information on the Wealth and Wellbeing Research programme, please visit our Wealth and Wellbeing page.
• Unless stated otherwise, the data used in this press release comes from a survey of 4,000 nationally representative UK adults conducted for LV= by Opinium in December 2024.