More than a quarter of British adults in their early 50s are ‘just getting by’ or ‘finding it quite’ or ‘very difficult’ financially, while two-thirds worry about how much money they will have to live on in retirement.
A new briefing paper by the UCL Centre for Longitudinal Studies reveals that more than four fifths of adults born in 1970 are in paid work in midlife. However, there are stark inequalities in the financial circumstances of this generation. The least well-off adults are 25 times more likely to not be working because of ill health, and nine times more likely to have financial difficulties than the most affluent.
Generation X should be approaching the peak of their careers and focusing on saving for retirement. Our new research shows that while most are in paid work, many are struggling financially.
Bozena Wielgoszewska, Senior Research FellowCo-author, Dr Bozena Wielgoszewska (UCL Centre for Longitudinal Studies) said: “Now in their early 50s, generation X should be approaching the peak of their careers and focusing on saving for retirement. Our new research shows that while most are in paid work, many are struggling financially and worried about the future.”
About the data
The researchers analysed data from more than 8,000 people born in England, Scotland and Wales during one week in 1970 who are taking part in the 1970 British Cohort Study. Drawing on data collected between 2021-24, they examined information on people’s current employment situation and financial wellbeing. They also examined their retirement expectations.
When asked to assess their current financial situation, one in four (26%) members of gen X reported that they were ‘just getting by’ or ‘finding it quite’ or ‘very difficult’. This was similar for men (25%) and women (26%).
Differences by people’s household income were unsurprisingly stark, with half of those (52%) in lower income households either ‘just getting by’ or ‘finding it quite’ or ‘very difficult’ compared to one in five (19%) of those in middle-income households and one in 17 (6%) living on higher incomes.
Almost one in 10 (9%) of the cohort were not working due to temporary or permanent ill health, this being similar for women (10%) and men (8%). However, poor health was concentrated among those in lower income households where one in four (26%) were not working or seeking work due to poor health, compared to one in 33 (3%) in middle income and less than one in 100 in higher income households.
Thinking about retirement
Looking ahead to retirement, two-thirds (66%) agreed that they worry about how much they will have to live on. These concerns were higher among women (70%) than men (62%) and highest of all among those in lower income households. Three-quarters (74%) of those in the least well-off homes said they worry about how much they will have to live on in retirement compared to two-thirds (66%) in middle income and just over half (55%) among the most affluent households.
Overall, 84% of gen X were economically active in midlife: 52% as a full-time employee, 13% part-time employee, 13% full-time self-employed, 4% part-time self-employed, and just 2% unemployed but seeking work. This was higher for men than for women (87% v 80%).
Members of gen X worked an average of 37.1 hours per week, with men working 41.1 and women 33.4 hours. Despite gen X women working more paid hours per week than their baby boomer peers, they still overwhelmingly report doing most of the household tasks.
Employment policies must focus on improving wages, job security, and working conditions to make work pay for all.
Co-author, Dr Vanessa Moulton (UCL Centre for Longitudinal Studies) added: “According to official figures, the number of people in the UK who are economically inactive due to long-term ill-health accounts for 7% of the working-age population. Our findings suggest the situation may be even worse for some members of gen X, particularly those in lower income households.
“With the State Pension age increasing to 67, the government needs to provide the necessary support for people to stay in or rejoin the workforce. Employment policies must focus on improving wages, job security, and working conditions to make work pay for all and especially the most vulnerable members of our society.”
Notes to editors
Read: ‘Employment and finances: initial findings from the 1970 British Cohort Study at Age 51’, by Sam Parsons, Vanessa Moulton, Bozena Wielgoszewska and George Ploubidis.
For more information or to speak to the researchers involved, please contact:
- Ryan Bradshaw, UCL Centre for Longitudinal Studies via telephone: +44 (0)207 612 6516 or via email: r.bradshaw@ucl.ac.uk
- Meghan Rainsberry, UCL Centre for Longitudinal Studies T: +44 (0)207 612 6530 E: m.rainsberry@ucl.ac.uk
Study methodology
Measuring economic activity – People were economically active if they were in paid work, or were not working but were seeking employment. People were economically inactive if they were not working and not seeking employment.
The 1970 British Cohort Study (BCS70) is following the lives of around 17,000 people born in England, Scotland and Wales in a single week of 1970. The Age 51 Sweep took place between summer 2021 and January 2024. Over 8,000 study members took part in a 75-minute survey, either online or with an interviewer. Data from this and previous sweeps of BCS70 are available to download from the UK Data Service.
