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Personal Financing Planner > Retirement > Only 28% of Gen Xs are doing well for a comfortable retirement! Will it help you buy UK stocks?
Retirement

Only 28% of Gen Xs are doing well for a comfortable retirement! Will it help you buy UK stocks?

June 10, 2025 4 Min Read
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  • The fear of retirement
  • Buy UK stocks
  • Trust time

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The ongoing crisis of life is destroying the plans of the British to retire. Higher bills either make less money to invest in UK stocks and other assets or make less money to save for later years.

According to Annuity Ready, only 28% of Generation X are on the course to meet their savings targets.This will allow them to live comfortably throughout their retirement.“.

This demographic consists of those born between 1965 and 1980.

As a result, a staggering 17% of Gen Xers fear that they will not be able to retire at all, predicting that four in five (78%) of them will not save enough money to stop their jobs.

Will building a portfolio of stocks and other exchange-selling securities help them turn their fate around?

The fear of retirement

Gen Xers says the lack of access to the ultimate payroll pension scheme, and the fact that automated equipment has only been introduced recently, will affect their pension savings. They also express their fears about future cost of living, along with the level and availability of national pensions.

The age group between 45 and 60 is the most pessimistic in the UK. However, other demographics are at risk of missing out on savings targets.

According to Annuity Ready, the percentage of people on track for a comfortable retirement is as follows:

  • 50% of Generation Z (born between 2001 and 2020)
  • 47% of millennials (born between 1981 and 2000)
  • 37% of the baby boomer generation (born between 1946 and 1964)
See also  Do I need to invest my ISA or SIPP in stocks and stocks to retire early?

In total, only four in 10 survey respondents said their retirement savings goals are on track.

Buy UK stocks

Needless to say, the more previous people begin planning for retirement, the more likely they are to achieve their goals. This is thanks to a mathematical miracle that has become more complicated. In the long term, savings and investors can grow their wealth exponentially by making all past profits.

But even the general Xers who are late to the party can make healthy nest eggs with the right strategy. I think it’s worth considering investing in UK stocks where someone can realistically target an average annual revenue of 8%.

Let’s say a 45-year-old begins his investment journey by putting £500 a month into British stocks. If they could hit that 8% figure, they would have built a decent portfolio worth £394,366 by the time they reached the state pension age of 68.

Trust time

An easy way to target such returns is to invest in UK listed trusts that hold a collection of stocks.

F&C Investment Trust (LSE:FCIT) is one such mutual fund that I think is worth considering. It owns over 400 companies around the world, offering outstanding diversification through geography and industry.

Major holdings here include high-tech giants Microsoft, nvidia, appleand Amazon. This could have a negative impact on returns during a recession. However, the digital revolution has also brought about excellent long-term benefits.

Taking these diverse approaches gives you the opportunity to generate wealth in a low-risk way. But that doesn’t mean that returns are mediocre. F&C Trust has generated an average annual return rate of approximately 10.9% over the past decade.

See also  Is it really a smart idea to contribute to SIPP before 45?

If this continues, if an investment of £500 is made here, the 45-year-old will become a nest egg even bigger than £394,366 by retirement.

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