According to Legal & General, a UK financial services, pensions and insurance behemoth, there’s a major section within Gen X who have unrealistic expectations about their financial future because aspirations have not adjusted to the harsh realities of today. They comprised the “austerity generation” of 35 – 44 year-olds. Many of this group are still hoping to retire at 62 with an income of 40,000 sterling pounds.

Anti-austerity protesters wave a Greek flag in front of the heavily guarded parliament in Athens’ Syntagma square during a demonstration February 12, 2012…photo, courtesy of Reuters

Austerity is a bitter pill and an economic necessity and is more so after years of over-spending and then the sudden need to tighten belts. The prevailing fears about the global economy have slowed business investment, and the high profile and hugely unpopular government austerity measures across many countries in Europe have put many citizens in great duress. The PIIGS countries in Europe are in dire straits amidst social protests and upheavals.

Oxford Street, London Police Ready For the “Austerity Protests” On 20 Oct 2012

In London, more than 150,000 people took part in a huge protest against the Government’s austerity measures. In busy Oxford Street many police personnel in their bright reflective vests, stood out from the crowd of shoppers and looked prepared. Apparently there were calls for a general strike. The ruling Coalition is being blamed for destroying the UK’s public services by its massive budget cuts, whilst the government itself  insists that public expenditure is falling. must accept this painful medicine because of the crippling debts left by Labour. We have no choice but to endure the inescapable horrors of deficit reduction.

Austerity Protests In London, 20 Oct 2012

“Cuts? There’s been no overall fall in public expenditure since Coalition came to power.” said the headline on the MailOnline. The last three lines in the report are particularly chilling. I quote them here for your benefit:

“The social disruption would be worse than it was in the Thirties.

We are a country that has worked itself into a highly nervous state over phantom cuts that have barely happened. Fasten your seat-belts and start praying if the axe really begins to fall.”

Retiring at 62? I think it prudent to stay healthy and hold on beyond your 62nd birthday before thinking of retirement.