Generation X and Retirement
Learn more about the retirement savings challenges facing members of Generation X, who are between the ages 43 and 58, and next in line to retire.Majority of Generation X believe dream retirement is out of reach
Key findings about the retirement readiness of Gen Xers from the 2023 Schroders US Retirement Survey include:
Non-retired members of Generation X (ages 43-58) say on average it will take approximately $1.1 million in savings to retire comfortably, yet they expect to have just $661,000 saved. The resulting savings gap is significantly larger than the expected shortfalls facing Millennials and Baby Boomers.
Six-in-ten (61%) non-retired Gen Xers are not confident in their ability to achieve a dream retirement compared to 49% of Millennials and 53% of non-retired Baby Boomers.
Nearly half (45%) of non-retired Gen Xers have not done any retirement planning, compared to 43% of Millennials and 30% of non-retired Baby Boomers.
Additional findings include:
- Underscoring the need for a plan, non-retired Gen Xers are allocating on average 32% of their assets earmarked for retirement to cash despite their time horizon and sizeable retirement saving gap. When asked about the reasons for investing their retirement assets in cash, almost two-thirds of these Gen Xers (63%) say they fear losing their money and nearly one-quarter (24%) report they are not sure how best to invest their savings.
- More non-retired Gen Xers (84%) are concerned or terrified about the idea of no more regular employment paychecks in retirement than Millennials (79%) or non-retired Baby Boomers (74%).
- Millennials (1.7 hours) and Gen Xers (1.5 hours) spend on average nearly double the amount of time Baby Boomers spend each day worrying about money (0.8 hours).
- Two-thirds of non-retired Gen Xers (66%) worry that they won’t be able to grow their workplace retirement plan to the level they had hoped, compared to 61% of non-retired Baby Boomers and 64% of Millennials.
“The size of the retirement savings gap facing Gen X is concerning, as they are the first generation to rely on 401k plans instead of pensions and the next in line to retire. 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.”
Head of US Defined Contribution
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Nearly Half of all Gen Xers Have Not Done Any Retirement Planning
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Deb Boyden, Head of US Defined Contribution