Once derided as the “slacker generation,” this generation is moving toward retirement, but many Gen Xers aren’t as optimistic about it because they haven’t adequately prepared.
According to the survey, only 62% of Gen Xers are confident that they can “financially support everything they want to do in life.” Allianz Life Insurance Annual Retirement Survey 2024This is significantly lower than both Baby Boomers (82%) and Millennials (77%).
Indeed, the simple fact that Generation X is approaching retirement may cause further anxiety: The oldest members of this generation, born between the mid-1960s and early 1980s, are just a few years away from retirement.
“Generation Xers are at a critical juncture in their retirement planning,” Kelly Lavigne, vice president of consumer insights at Allianz Life, said in a statement. “For Gen Xers, retirement is no longer far away. While it may feel stressful, by preparing now, they can put strategies in place to help them achieve their ideal retirement.”
Meanwhile, many Baby Boomers are already enjoying retirement and have less to plan for, giving Millennials more time to prepare.
But Baby Boomers have reason to be worried, as high inflation is reducing the fixed income that many of them depend on. In fact, many Baby Boomers are “not retiring” in large part due to the rising cost of living. And for Millennials, high student loan debt and high mortgage interest rates are delaying important financial milestones in life. That’s why Gen X’s gloomy attitude is especially noteworthy.
Gen Xers’ main concern is not saving enough, with 55% saying they wish they had saved more. The main obstacles to saving cited by this regretful group were everyday expenses, credit card debt and mortgages.
But the Allianz survey also found that Gen X is lagging behind other generations in taking key steps to prepare for retirement.
Currently, only 35% of Gen Xers are working with a financial professional, compared to 46% of millennials and 54% of baby boomers. Additionally, 58% of Gen Xers don’t have a “written financial plan” of any kind, compared to 52% of baby boomers and 37% of millennials, according to Allianz.
Other surveys have also shown that Gen Xers are more worried about retirement than Baby Boomers and Millennials, and many of them expect to work longer than they originally planned.
of Schroders 2023 U.S. Retirement Survey The study also found that Gen X workers say they need to save just over $1.1 million on average to retire comfortably, but expect to save about $660,000.
Another study A study by the National Institute for Retirement Security also found that Gen X has the greatest wealth disparity, with the top 25% having an average of $250,000, compared to about $35,000 for the bottom quarter.
Allianz, meanwhile, said retirement is not just about saving and having a set amount of money.
“In retirement, you’ll need to draw from your assets to generate income,” Lavigne says. “A sound retirement income strategy will help you use your assets efficiently and protect against the risk of burning through your savings sooner than expected. You want your money to last.”
