Only 43% of Baby Boomer households are on track to meet the PLSA’s target for moderate retirement income, according to new research.

This compares to 46.9% of Generation X households, according to the latest HL Savings and Resilience Barometer.

The UK average is 42.6%.

The PLSA (Pensions and Lifetime Savings Association) standards say a single person would need a retirement income of £20,800 per year to achieve a moderate standard of living, while a couple would need £30,600.

Only 46.6% of Baby Boomer households have surplus income left at the end of the month, in comparison to an average of 50.5%.

Generation X households were more likely to have surplus income, with 54.9% having money leftover at the end of the month.

Boomer households were more likely to have life insurance than their younger counterparts with 78.6% having coverage in comparison to 48.8% of Generation X and 31% of Millennial households.

Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown, said: “Baby Boomers on the cusp of retirement face a real crunch time as the cost-of-living crisis continues to bite. There is a lot of discussion about how the Baby Boomer generation have a better financial deal than those who came after them. They are more likely to retire with a final salary pension and to have benefited from the enormous house price inflation we have seen over the years. Many are sitting on a great deal of wealth.

“However, that certainly isn’t the case for everyone. Many have retired with generous pensions but given they have worked the majority of their careers in the pre-auto-enrolment world there are also those facing retirement with little, if any, pension wealth. Similarly, when it comes to home ownership – not everyone has been able to get on the housing ladder and so go through retirement either still paying off a mortgage or needing to find money for rent -it’s an enormous expense that really affects overall financial resilience.”

The HL Savings and Resilience Barometer measures the financial resilience of the nation every six months in partnership with Oxford Economics.

It is structured around the five pillars of financial behaviour that are fundamental in order to balance current and future demands, while guarding against risks. These are: controlling your debts, protecting your family, saving for a rainy day, planning for later life and investing to make more of your money.