With pension policy changes, the rising cost of living, and financial illiteracy, securing a stable future has become increasingly difficult.

New research from Annuity Ready reveals that while 40% of respondents feel they are on track for a comfortable retirement, Gen Xers in London lag at just 28%. In contrast, Gen Z, Millennials, and even Baby Boomers report feeling more financially secure.

81% of Londoners have never sought advice from Pension Wise, the government-backed pension advice service, highlighting the challenges in accessing essential financial support.

While most correctly identified a state pension as a regular government payment, many still hold misconceptions about retirement planning.

For many Gen X workers, the retirement dream is slipping away. In 1995, 50% of UK workers had access to a final salary pension—today, that number has collapsed to just 12%.

While nearly half of Gen X had access to these schemes early in their careers, 65% say they are no longer available. This shift has left millions relying on personal savings and defined contribution pensions, often providing far less financial security.

Introduced in 2012, auto-enrolment arrived too late for many in this generation. 30% say it has not impacted their savings, and they now face the challenge of trying to catch up with limited time.

Many find the retirement planning process overwhelming. Eighty per cent of Londoners say they would welcome a guaranteed income for life, yet 31% do not understand annuities—an option that provides a guaranteed income in exchange for a lump sum from a pension.

This lack of awareness means many could be missing out on financial security. 66% were unaware that annuities can offer better benefits for those with pre-existing medical conditions, weight issues, or smoking habits.

This highlights another critical gap in financial planning knowledge: Those who could benefit most from certain financial products are unaware of their options.

Retirement anxiety is growing.

• 17% of Gen X believe they will never be able to retire.
• 66% fear the cost of living will prevent them from retiring comfortably.
• 59% worry the state pension will be insufficient or unavailable by the time they retire.
• 75% believe they are more likely to own the property they plan to retire in rather than rent, reflecting the importance of homeownership in retirement planning. Rising rental costs and housing insecurity further strain their long-term financial prospects.
• Over a quarter of Brits believe they will need upwards of £500,000 to retire comfortably, yet many are nowhere near achieving this goal. The stark reality is that many will be forced to continue working well into their later years.

Pension experts warn that without significant reforms or increased savings rates, many Gen X workers may have no choice but to work indefinitely.