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Retirement Planning > Retirement Investing

Gen Xers Fret About Retirement Savings Gap

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Gen Xers are feeling downbeat about achieving their retirement goals, Schroders reported Wednesday.

In a survey, non-retired Americans ages 43 to 58 said that on average they will need $1,112,183 in savings to retire comfortably but expect to put away just $661,013, leaving a shortfall of $451,170.

Millennial and baby boomer respondents look forward to a smaller savings gap. Millennials believe they will need $1,280,892 to retire comfortably and expect to have saved $877,266, resulting in a gap of $403,626.

Boomers still in the workforce say it will take $924,897 in savings to retire comfortably but anticipate having saved $291,496 less than that, or $633,401.

Put another way, the survey findings showed that 61% of non-retired Gen Xers are not confident in their ability to achieve a dream retirement, compared with 53% of non-retired boomers and 49% of millennials. 

Further, 45% of non-retired Gen Xers said they have done no retirement planning, compared with 43% of millennials and 30% of non-retired boomers. 

“The size of the retirement savings gap facing Gen X is concerning, as they are the first generation to rely on 401(k) plans instead of pensions and the next in line to retire,” Deb Boyden, head of U.S. defined contribution at Schroders, said in a statement. 

“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.” 

The research firm 8 Acre Perspective conducted the survey from Feb. 13 to March 3 among 2,000 U.S. investors nationwide ages 27 to 79. The median household income for working Americans surveyed was $75,000. 

Lack of a Plan

Gen Xers’ lack of a plan manifested in several ways, according to the survey. Non-retired Gen Xers are allocating on average 32% of their assets earmarked for retirement to cash despite their time horizon and sizable retirement savings gap. 

Asked why they are investing their retirement assets in cash, almost 63% said they fear losing their money, and 24% said they are not sure how best to invest. 

The survey also found that Gen Xers are preparing to make do with less support from Social Security in retirement. Just 11% of non-retired Gen Xers said they will wait until 70 to receive their maximum Social Security benefit payments. 

Forty-seven percent reported being concerned that Social Security may run out of money, compared with 44% of millennials and 38% of non-retired boomers fearing potential insolvency for Social Security. 

“As the first generation to head into retirement without the safety net of a pension plan, the stakes are higher for Generation X and the margin for error is lower,” Boyden said. 

“Not only are Gen Xers facing a formidable savings gap, (but) our findings suggest a knowledge gap is a formidable headwind that’s threatening to prevent many from reaching their dream retirement.” 

Money Worries

Eighty-four percent of non-retired Gen X survey participants said they are concerned — terrified, even — about the absence of regular employment paychecks in retirement, compared with 79% of millennials and 74% of non-retired boomers.

Millennials spend 1.7 hours a day on average and Gen Xers 1.5 hours worrying about money. Boomers are somewhat less apprehensive, spending 0.8 hours fretting about money.

Sixty-six percent of non-retired Gen Xers worry that they will not be able to grow their workplace retirement plan to the level they had hoped. Sixty-four percent of millennials and 61% of non-retired boomers share this concern. 


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