How can you increase your pension pot? Generation X is lagging behind in retirement savings

Here are some reasons why the over-50s are falling behind other generations in terms of pension savings

Research indicates that Generation X, or savers over 50, are the group most at risk of experiencing a retirement deficit and may be the first to have less financial security than their forebears.

Compared to other generations, pension savers over 50 are the least prepared for retirement, according to a PensionBee analysis.

According to PensionBees' 2025 Pension Landscape, women over 50 have an average retirement savings of £30,644, while men in the same age range have an average of £54,512.

However, the issue is more complex than the gender pension gap alone.

According to calculations by PensionBees, if Generation X savers wish to retire at age 66, they will, on average, have a retirement pot worth 88,444 based on a 5% annual growth rate.

Other generations benefit from time and age.

By the time they are 66, savers under 30 might have a pot worth 181,165, assuming the same investment performance and the average size of the generation's savings.

For savers in their 30s and 40s, this increases to 178,439 and 130,140, respectively.

What has caused Generation X to lag behind in saving for their pensions?

A number of obstacles have affected the over-50s generation's capacity to accumulate pension funds.

According to PensionBee, they joined the workforce during recessions, experienced stagnant incomes, and endured numerous financial shocks that affected their earnings and pension power, including the 2008 financial crisis and the .com crash.

According to PensionBee, long-term planning was further derailed by the Covid-19 pandemic, which struck just as they were reaching their peak earning years.

This group also supports aging parents and dependent or returning children, making them a member of the so-called "Sandwich Generation." Pensions have, perhaps inevitably, become less important in the face of mortgages, long-term care expenses, and university tuition.

Even though some people have been protected by rising home prices, the lack of pension savings points to an impending retirement security gap.

According to PensionBee's vice president of personal finance, Maike Currie, "Gen X has been squeezed from every side, juggling supporting children and caring for aging parents while enduring numerous economic shocks.

"It is not surprising that pensions have fallen from their list of priorities. In actuality, though, this generation is approaching retirement with far less financial stability than their parents did.

"Unless we act now, Gen X could become the first generation to retire worse off than the one before," she said, warning that this should serve as a wake-up call for decision-makers and the industry to provide the resources, assistance, and flexibility this underappreciated generation sorely needs.

How to increase your pension.

With an estimated 43,900 annually needed for a comfortable retirement, the more you can save for your pension to approach this amount of money, the better.

However, you will still have other benefits like the state pension, and you may be able to work longer hours or find other sources of income like buy-to-let.

No matter your age, there is still time to increase your pension.

"Take the time to find your pension and keep your information current," advised money coach Benjamin Beck, advising against dismissing small pension pots from prior employment. I have seen people reject a pension fund worth 10,000. Your money is involved.

A bank account with £10,000 in value would not be disregarded. This is your future earnings, so take care of it so that it can take care of you.

People should not disregard their pension statement, according to Rob Mansfield, an independent financial advisor at Roots Wealth Management.

He went on: "Don't just put it in the pile of things to do tomorrow. Are your nominations for death benefits current? Are you satisfied with the fund's performance? How does it compare to its benchmark?

"Your pension is your responsibility, but it's simple to wait until it's too late and believe that someone else is in charge of it. Take charge and seek assistance if you need it. Ribble Wealth Management's chartered financial planner, Anita Wright, recommended raising pension contributions.

"Every time you receive a pay increase, increase your pension contributions by just 1% to 2%," she said.

"Remember that having too much cash on hand exposes your savings to the depletion of inflation. To improve long-term planning, map out your spending needs using a cash flow model, use the 4 percent withdrawal rule as a guide while accounting for market conditions and inflation, and diversify your assets to lower volatility and safeguard your retirement income.