A significant majority of Generation X are approaching retirement with little financial preparation, according to new research from LV=.
The investment, protection and retirement specialist revealed that two-thirds of those aged 45 to 49 feel unprepared for their retirement years.
The findings, drawn from LV=’s latest Wealth and Wellbeing Research Programme, expose growing anxiety among this age cohort, many of whom are now within two decades of stopping work.
Of those surveyed, half said they were unsure about which income option they would select once they retire – an uncertainty that suggests a need for clearer guidance and broader awareness of retirement strategies beyond traditional options.
Among the alternatives is the Fixed Term Annuity, which LV= says provides a guaranteed income for a chosen period while retaining some flexibility. Unlike a Lifetime Annuity, which commits the buyer to an income for life, a Fixed Term Annuity allows for a future reassessment of retirement needs.
Despite this adaptability, only 7% of Generation X respondents said they would consider such a product, compared with 18% who favoured the more familiar Lifetime Annuity.
The research also highlights widespread confusion, with 28% of Gen X respondents admitting they struggle to understand financial information. LV= says this confusion underscores the need for more accessible retirement planning resources and better financial education.
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.”
