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Those born between 1965 and 1980 - the so‑called Generation X - risk “sleepwalking” into an inadequate retirement, despite higher exposure to property, with nearly twice as many owning buy‑to‑let homes as Baby Boomers, according to new analysis from Rathbones, one of the UK’s leading wealth and asset management groups.
The Pensions Commission’s recent interim report on the state of retirement saving in the UK identifies Generation X as one of the most at-risk cohorts. This reflects their timing: many entered the workforce as defined benefit pensions were disappearing, with fewer employers offering workplace schemes, and before automatic enrolment helped normalise consistent saving.
Where Baby Boomers largely benefited from both generous pension, Generation X faces a far more fragmented picture - one that appears to tilt towards property rather than liquid, tax‑efficient investments.
A Rathbones survey* of 3,092 UK adults - including 1,025 Gen Xers and 1,050 Baby Boomers - shows that while Gen Xers are more likely to have pensions - excluding final salary schemes - they are almost twice as likely to own a buy‑to‑let property (17% vs 9% for Baby Boomers).
However, they are less likely to hold tax‑efficient investments such as ISAs (66% vs 78%) or other investment accounts (45% vs 52%).
Rebecca Williams, Financial Planning Divisional Lead at Rathbones, says: “Many Gen Xers are sleepwalking into retirement with far less financial security than their parents. They came of age as defined benefit pensions were disappearing and have since faced years of stagnant wage growth and repeated financial shocks, making it harder to build robust, long‑term savings.
“This cohort also represents a large part of the ‘sandwich generation’, juggling day‑to‑day costs while supporting both ageing parents and children. As a result, boosting retirement savings can be difficult amid ongoing financial pressures.
“It’s perhaps no surprise that property - particularly buy‑to‑let - has been seen as an alternative route to funding retirement. But relying on property as a pension can leave retirees overly exposed to a single, illiquid asset at a time when flexibility is most needed.”
Rathbones’ “Don’t Bet the House” research suggests the conditions that drove strong property returns in previous decades have already shifted. Between 1980 and 2016, UK house prices rose by around 6.7% a year (8.5% in London), comfortably outpacing inflation. Crucially, today’s investors are unlikely to benefit from the same tailwinds. Since 2016, UK house prices have risen by just 3.7% annually - barely keeping pace with inflation - while London property has underperformed, rising by just 1.3% a year (to start of 2025).
Over the same period, stock markets have delivered significantly stronger returns: £100 invested in London property in 2016 would today be worth around £111, compared with £174 if invested in equities.
Isabella Galliers-Pratt, Senior Investment Director at Rathbones, says: “The conditions that fuelled the property boom have long since changed. Property is less flexible than pensions or investments, and rental income can be less predictable - particularly as higher interest rates, tax changes and rental reforms have squeezed returns and added complexity for landlords. The idea that property is always a ‘safe bet’ no longer holds true in many parts of the country.
“By contrast, pensions benefit from upfront tax relief, tax‑efficient growth and access to diversified investments, making them a more structured and effective way to build long‑term retirement income. A more resilient approach typically involves balancing different asset classes, ensuring pensions, investments and property work together to meet income needs and align with personal risk tolerance.”
