If you’re part of the so‑called Generation X – born between 1965 and 1980 – then you might want to check whether you are one of those who are deemed “property rich, pension poor”… and risk “sleepwalking” into an inadequate retirement.
“Generation X” – the 14-million strong cohort born between 1965 and 1980 – may not necessarily have benefited from the generous pensions and relatively modest cost of houses in the same way as many in the “Boomer” generation did.
But plenty still face problems in retirement.
In fact, according to new analysis from wealth and asset management group Rathbones, many GenXers risk “sleepwalking” into an inadequate retirement, despite their higher exposure to property – including buy-to-let investments.
Moreover, the Pensions Commission’s recent interim report on the state of retirement saving in the UK identifies Generation X as one of the most “at-risk” cohorts.
This reflects the fact that many entered the workforce as defined benefit pensions were disappearing, with fewer employers offering workplace schemes, and before automatic enrolment helped normalise consistent saving.
Where Baby Boomers largely benefited from both generous pensions and house price rises, they say, Generation X faces a far more fragmented picture – one that appears to tilt towards property rather than liquid, tax‑efficient investments.
A Rathbones survey of 3,092 UK adults – including 1,025 Gen Xers and 1,050 Baby Boomers – shows that while Gen Xers are more likely to have pensions – excluding final salary schemes – they are almost twice as likely to own a buy‑to‑let property (17% vs 9% for Baby Boomers).
However, they are less likely to hold tax‑efficient investments such as ISAs (66% vs 78%) or other investment accounts (45% vs 52%).
The squeezed “sandwich generation”
Rebecca Williams, Financial Planning Divisional Lead at Rathbones, says: “This cohort also represents a large part of the ‘sandwich generation’, juggling day‑to‑day costs while supporting both ageing parents and children.
“As a result, boosting retirement savings can be difficult amid ongoing financial pressures.
“It’s perhaps no surprise that property, particularly buy‑to‑let, has been seen as an alternative route to funding retirement. But relying on property as a pension can leave retirees overly exposed to a single, illiquid asset at a time when flexibility is most needed.”
Since 2016, UK house prices have risen by just 3.7% annually – barely keeping pace with inflation – while London property has underperformed, rising by just 1.3% a year (to start of 2025).
Over the same period, stock markets have delivered significantly stronger returns: £100 invested in London property in 2016 would today be worth around £111, compared with £174 if invested in equities.
Isabella Galliers-Pratt, Senior Investment Director at Rathbones, says: “The conditions that fuelled the property boom have long since changed.
“Property is less flexible than pensions or investments, and rental income can be less predictable – particularly as higher interest rates, tax changes and rental reforms have squeezed returns and added complexity for landlords. The idea that property is always a ‘safe bet’ no longer holds true in many parts of the country.”
Are YOUR investments balanced for a secure retirement?
Investment values can sometimes fall as well as rise… and certainly some assets can underperform or be subject to shifts in market sentiment.
Whatever assets you have tucked away in your portfolio, it’s always worth conducting a regular healthcheck to make sure they are still on the right trajectory to deliver the retirement you have been hoping for.
Going into your RetireEasy LifePlan regularly allows you to keep a constant eye on how shifts in market values, inflation, and other factors are playing into the equation – and giving you plenty of time to make adjustments if needed to how and where your hard-earned savings are invested.
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