Gen X is less confident about retirement as ‘crunch time’ approaches – and has done less to prepare than boomers or millennials

Only 62% of Gen Xers feel confident about “being able to financially support all the things they want to do in life,” according to Allianz Life Insurance’s 2024 Annual Retirement Study. That’s far fewer than baby boomers. (82%) and millennials (77%).

To be sure, the simple fact that Gen X is approaching retirement can cause more anxiety. Being born between the mid-1960s and early 1980s, the oldest of the generation is only a few years away.

“Gen Xers are hitting a tough time for retirement planning,” Kelly LaVigne, vice president of consumer insights at Allianz Life, said in a statement. “For Gen Xers, retirement is no longer this distant idea. This can feel stressful, but by preparing now, they can create a strategy that will help them seek their ideal retirement.”

Meanwhile, many boomers are already enjoying retirement and have less planning to do, and millennials have more time to prepare.

But they still have reason to worry as high inflation has eroded the fixed incomes many boomers rely on. In fact, many tradespeople are going “no pension” mainly because of the rising cost of living. And for millennials, heavy student loan debt and high mortgage rates have delayed major financial milestones in their lives. This makes Gen X’s gloomier attitude extra obvious.

A top concern among Gen Xers is a lack of savings, with 55% saying they wish they had saved more. Among that regrettable group, the top barriers to saving they cited were daily expenses, credit card debt, and housing debt.

But the Allianz survey also found that Gen X has lagged other generations in taking key steps to prepare for retirement.

Only 35% of Gen Xers are currently working with a financial professional, compared to 46% of millennials and 54% of boomers. In addition, 58% of Gen Xers do not have a “written financial plan,” according to Allianz, compared to 52% of boomers and 37% of millennials.

Other studies have also shown that Gen Xers are more worried about retirement than boomers and millennials, with many expecting to work longer than they originally planned.

The Schroders 2023 US Retirement Survey also showed that Gen X workers on average say they will need just over $1.1 million in savings to retire comfortably, but expect to have about $660,000 saved.

Another study by the National Institute for Retirement Security found that Gen X also has the largest wealth gap: The top 25% have an average of $250,000, while the bottom quartile has about $35,000.

For its part, Allianz said that retirement is more than just saving and hitting a certain amount of money.

“Once you retire, you’re going to have to draw on those assets for income,” LaVigne said. “A sound retirement income strategy will help make efficient use of your assets and include contingencies for risks that could cause you to spend savings sooner than expected. You need to make sure that the money last.”

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