London, September 2026: New research from Octopus Money reveals that more than half (54%) of Brits in their late 40s and 50s — known as Generation X — say saving for a pension is a money worry for them right now, the highest of any generation.(1)
Timing may be a part of why pension confidence is low. Many in Gen X started work during the decades when old-style “final salary” pensions, which guaranteed a set income for life, were being progressively scrapped by employers.(2) But the new rules forcing bosses to automatically enrol staff into a workplace pension didn’t arrive until years later, and many did not reach today’s minimum payment levels until 2019.(3)
The research, carried out by Censuswide on behalf of Octopus Money among 2,000 UK working adults in July 2026, shows that this is reflected in the numbers. Gen X took five years on average to start contributing to a pension after landing their first job, at an average age of 27.(4) Worryingly, more than a quarter (26%) were working for over a decade before they made their first pension contribution at all.
Compare that to Gen Z today, a generation for whom auto-enrolment has simply always existed, who are starting within 3 years, aged 22 on average. Octopus Money analysis estimates that on an average UK salary, missing out on ten years of pensions contributions could cost £X in retirement.
Low confidence, even lower action
37% say their finances have worsened in the past two years, again the highest of any age group, and half (50%) don’t think they’ll have enough saved up to retire comfortably.(5) These numbers mirror what Octopus Money sees in data from 20,000 customers: the majority of Gen X (66%) aren’t confident they’re on track to reach their retirement goals.(6)
But many aren’t doing much to fix it. Only 30% say they’ve increased their pension contributions in the last five years to try to close the gap, the second lowest of all generations.(7)
Adding to the pressure, Gen X are also among the least confident that the State Pension will still exist in its current form by the time they retire, with only 48.7% confident it will — the second-lowest of any generation, behind only millennials.(8) For a generation already playing catch-up on private pension saving, that uncertainty over the State Pension compounds the sense that they feel they can’t rely on a safety net they were promised.
The “sandwich generation”
Competing caring pressures for Generation X make it even harder for this generation to catch up. A separate Octopus Money study of 2,000 UK parents aged 45-65 from March 2026 found that 59% believe financial stress is higher in midlife than it was in their 20s — rising to 67% among 45-49 year-olds.(9)
The majority of parents (92%) with adult children support them financially, with over a third (35%) doing so frequently. Almost a third (30%) of parents say they provide financial support for their own parents or parents-in-law, spending on average £1,632 each year.
Among those supporting both generations at once, 39% had to dip into savings, 33% cut back on everyday spending, 8% put off financial goals altogether, and 7% delayed their own retirement.
Dan Marsh, CEO at Octopus Money, said: “If you’re worrying about pensions you’re not alone: we hear from a lot of customers who wish they’d received pension education sooner, and it’s no surprise Gen X is feeling the most concerned. Many only realised the impact of being caught in the ‘autoenrolment gap’ once other pressures such as caring for an elderly parent or raising children were already screaming loudest.
“Our advice is always the same: you can only deal with the situation you’re in today, not the one you wish you’d started with. The moment you decide to change something is the moment you start moving forward and often only small changes are needed to make a real difference. We’ve seen many people turn their pension around that way.”
CASE STUDY: “I was told that I’d be better off spending money “on a night out” than saving it”
Sarah*, 47, didn’t start paying into a pension until her 30s, partly influenced by some advice she received when younger. “At 19 I was told that I’d be better off spending £10 a month “on a Friday night out” rather than saving it as the amounts I would have been able to save were so small. Looking back, I am regretful because that small amount could have grown with compound interest, but when I was that age I wasn’t thinking about retirement.”
Career breaks for parenting, then years in part-time work, widened the gap further before she returned full-time a decade ago. “It was only after an inheritance following my parents’ deaths that I was able to meaningfully catch up. Watching that money grow helped change my habits, because once you see it growing more substantially it’s a real motivator to go, all right, if I put more in I might be able to grow my money more quickly. I have now increased contributions significantly.”
She’s clear that not everyone has that option: “I don’t know if I would have been putting as much in if I hadn’t been able to do that.” In her day job in HR, she sees younger employees opting out of auto-enrolment, and believes the system starts too late for most people: “I don’t think in this country we have enough education on planning for the future. I wish I’d known more about investing from a younger age.”
Sarah completed a free coaching session with Octopus Money. “I thought it was going to be a bit of a sales call, but it wasn’t at all. I have completed coaching myself in my HR role, so I know that it really was coaching and it helped me view my situation in a new light. I did actually have a money adviser already, but this session felt more human and helped me change the way I thought about retirement and how to reach my goals more quickly.”
ENDS
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Notes
Research conducted by Censuswide, on behalf of Octopus Money, among a sample of 2,000 UK working adults. The data was collected between 09.07.2026 and 16.07.2026.
Generational definitions used in this release: Generation Z (born 1997–2012), Millennials (born 1981–1996), Generation X (born 1965–1980), Baby Boomers (born 1946–1964).
- “Saving enough for retirement” as a current pressure: Gen Z 32.7%, Millennials 41.0%, Gen X 54.3%, Boomers 48.0%.
- pensions-institute.org/wp-content/uploads/The-decline-of-the-UK-Private-Sector-Final-Salary-Pension-Scheme.pdf
- “In April 2019 the phased introduction of AE was completed when the minimum contribution increased to 8% of qualifying earnings with a minimum of 3% from the employer”: gov.uk/government/statistics/ten-years-of-automatic-enrolment-in-workplace-pensions/ten-years-of-automatic-enrolment-in-workplace-pensions-statistics-and-analysis
- Mean years elapsed: Gen Z 2.7 → Millennials 4.6 → Gen X 5.2 → Boomers 5.9. Mean age at first contribution: Gen Z 21.6 → Millennials 25.7 → Gen X 27.0 → Boomers 28.6.
- Worse finances over two years (Net): Gen X 37.1%, Millennials 29.3%, Gen Z 29.0%, Boomers 25.8%. Confident (Net) they’ll retire comfortably: Gen X 49.9%, Millennials 57.7%, Boomers 61.8%, Gen Z 73.5%.
- Internal Octopus Money customer data, analysis of 20,592 customers who set at least one financial goal (of which 5,579 were Gen X, aged 46–61), as of July 2026. Confidence scores based on the subset of 14,577 customers (5,173 Gen X) who specifically set a “retire comfortably” goal.
- “Yes” to increasing contributions: Gen Z 44.2%, Millennials 35.2%, Gen X 30.2%, Boomers 29.2%.
- Confident (Net) on State Pension surviving: Gen X 48.7% and Millennials 50.3% are the two lowest, versus Gen Z 63.0% and Boomers 80.8%.
- Research conducted by Opinium, among a sample of 2,000 Nat Rep UK parents aged 45-65. The data was collected between 18.02.26 and 02.03.26.