Generation X anticipates being more than 40% short on the savings they need to retire comfortably, according to a new survey.
The Schroders 2023 U.S. Retirement Survey found Gen Xers — individuals aged 43 to 58 — estimated they need $1,112,183 to retire comfortably but anticipate amassing only $661,013. The $451,170 gap surpasses the expected deficits of both millennials and non-retired baby boomers.
Millennials (ages 27-42) foresee a $403,626 shortfall and working baby boomers (ages 59-77), a $291,496 deficit.
Among Gen Xers, 61% express doubt about achieving their dream retirement. A significant 45% of Gen Xers admit to having done no retirement planning whatsoever.
Deb Boyden, head of U.S. Defined Contribution at Schroders, said in a statement that the size of the retirement savings gap facing Gen X is concerning. “Fortunately, even the oldest Gen Xers have some time before reaching their full retirement age. Using this time to develop a retirement plan and increase their savings rate is crucial to improving their retirement readiness before it’s too late.”
More concerns
The investment behavior of non-retired Gen Xers also raises concerns. Despite their looming savings gap, they allocate, on average, 32% of their retirement assets to cash, Schroders found.
Just 11% of Gen Xers said they plan to delay Social Security benefits until 70 to maximize their payments, with 47% fearing its potential insolvency — a concern higher than that of baby boomers and millennials.
The findings also reveal broader concerns: more Gen Xers worry about the end of regular paychecks in retirement compared with other generations, and they spend considerable time fretting over financial matters. Two-thirds of them are concerned about the growth of their workplace retirement plans.
The Schroders 2023 U.S. Retirement survey was conducted from Feb. 13 through March 3 by 8 Acre Perspective among 2,000 U.S. investors nationwide ages 27 to 79. The median household income for working Americans surveyed was $75,000.
