Only 14% of Generation X (Americans ages 44 to 59) say the have enough savings for retirement, according to a new survey.
On average, Gen Xers say they need to save $1,069,746 but expect to have just $602,944 when they retire, the Schroders 2024 U.S. Retirement Survey has found. That means a savings gap of $466,802 — larger than the savings gap expected by Millennials ($322,128) and Baby Boomers ($353,069).
Millennials (ages 28-43) say they need to have $1,171,067 for a comfortable retirement but expect to save $848,939. And Baby Boomers (ages 60-79) who are still working state it takes $1,004,742 to retire comfortably and expect to have $651,673.
“If planning and saving don’t become higher priorities, Gen X could become the lost-retirement generation,” said Deb Boyden, Head of US Defined Contribution, Schroders, in a news release. “As the first generation to come of age with 401(k) plans rather than traditional pensions as their primary retirement savings, many Gen Xers missed out on the automation features that were not available in the early years of 401(k)s, such as auto enroll, auto escalate and QDIAs (Qualified Deferred Investment Alternatives) for a good part of their savings. However, even the oldest Gen Xers have several years left to better prepare financially before reaching their full retirement age.”
Schroders reports that 54% of Gen Xers are concerned or very concerned that they will outlive their assets in retirement compared with 40% of Baby Boomers and 50% of Millennials.
Gen Xers are more likely than other generations to lack the guidance of a financial advisor. Only 27% of Gen Xers surveyed work with a financial advisor compared with 37% of Baby Boomers and 31% of Millennials. Additionally, 48% of Gen Xers have not planned for retirement, compared with 41% of Millennials and Baby Boomers.
And 60% of Gen Xers who still work lack confidence in their ability to achieve their retirement goals compared to 48% of non-retired Millennials and 52% of non-retired Baby Boomers.
“It’s never too late to seek the services of a financial advisor or explore investment solutions tailored to help retirees grow and safeguard their savings,” Boyden said. “With more than half of Generation X worried about outliving their assets, a plan for generating income in retirement that includes an informed decision about when to apply for Social Security benefits could provide
On average, Gen Xers keep 35% of their retirement savings in cash, with 64% of those who do saying they fear losing too much in a stock market decline.
More than half of retired Gen Xers (53%) are concerned or very concerned about having to return to work to pay their bills compared to 20% of retired Baby Boomers.
Additionally, 26% of Gen Xers worry about the idea of no more regular employment paychecks in retirement, compared to 22% of non-retired Millennials and 15% of non-retired Baby Boomers.
Just 10% of Gen X plan to wait until age 70 — the age at which an individual reaches their maximum monthly benefit – to take Social Security benefits, and 43% of those say it’s because they are afraid Social Security may run out of money or stop making payments. That contrasts with to 24% of Baby Boomers and 37% of Millennials with the same plan and concern.
