Babyboomer generation of ‘retire-easies’

Over-50s say they find it easier to save for retirement compared to their parents and children.

Those people in their fifties thinking about their impending retirement should count themselves lucky – they will probably be the last generation of ‘retire-easies’.
A new report from Scottish Widows reveals that over-50s ‘retire-easies’ realise that they are the lucky ones, as over half (58%) think it will be difficult for their adult children to build up a pension, and the same amount (60%) recognise the problems their children will have in building up any savings at all.

Likewise, half (53%) of those over 50 think it was more difficult for their parents to save into a pension, or to accumulate savings (50%). This leaves the lucky generation of ‘retire-easies’ in the middle, likely to be reaping the benefit of final salary schemes and the results of a property boom, meaning more money to put by, either into a pension or as a nest egg.

This feeling is echoed by the younger generation with half (50%) of today’s 20 and 30-somethings thinking it was easier for their parents to save into a pension. The same number (50%) think their parents found it simpler to build up a separate savings pot.

Given this, it is no surprise that four in 10 parents (39%) have given or lent their adult children a substantial amount of money from their own savings. Of these, nearly a quarter (22%) handed out money to help their children to pay off debt. A quarter (25%) felt their own children needed the money more than they did, and four in 10 (41%) were concerned that their children needed bailing out. Luckily, the majority (62%) had no specific plans for this money before lending it to their children.

Anne Young, savings expert at Scottish Widows comments: “Those people that don’t fit into the category of ‘retire-easies’ appear to have a bleak outlook for their retirement and ability to save. Although the research shows that the over-50s seem to have a more positive view of their retirement compared to the generation above and below them, the situation isn’t necessarily as gloomy for those under-30 as they may think. It seems their parents are recognising that their children’s future isn’t as rosy as their own, and so are giving them a financial helping hand.”

Professor Merlin Stone, leading economist comments: “In general, the conclusion seems to be that babyboomers have saved enough to fund their retirement, but the following generations have been less successful in this respect. The survey also shows that most people think that it will be harder for their children to save than it was for them, just as they believe it was easier for their parents. So this generation of over-50s know in their hearts that they will be called upon to help.”

Anne Young continues: “There are a few handy tips that will make saving easier for those people that might find paying off debt or getting onto the property ladder is taking up all their income. Try having two separate savings accounts – one for those rainy days that you are able to dip into, and another that you don’t touch at all, so that you can build up a nest egg without even noticing. Investing by direct debit into a tax-efficient ISA is another easy way to save some money.”