Dude, Gen Xers are completely unprepared for retirement, according to survey

For the so-called slacker generation, the reality of retirement is grim.

Just over half of the generation born between 1965 and 1980 Millions of Gen Xers in the US have less than $10,000 in savings, and 18% have no savings.

The results, which have been confirmed in two other recent surveys, reflect the pressures this generation is facing and are a major wake-up call – especially for the oldest members, who are about a decade shy of retirement age.

“The Generation on the Economy and Long-Term Social Security Benefits.”

“Generation Xers have less confidence in their financial future”

(Source: Prudential)

(Source: Prudential)

The Prudential study follows Allianz Life Insurance Company of North America’s latest study, released last week, and Northwestern Mutual’s 2023 Planning and Progress Study, released in mid-May, both of which raise serious concerns about the future financial prospects of Generation X let arise.

It’s a triad of dire news for Generation X.

In the Allianz report, 64% of the generation fear they will not be financially prepared for retirement as time goes on.

As if that weren’t enough, nearly half (46%) believe their savings could outlive them, according to Northwestern Mutual’s survey of 2,740 US adults conducted between February 13 and March 2, 2023 .

Portrait of a worried mature man on an orange background

(Photo: Getty Creative)

“A notable finding from our report was that Generation Xers are less confident about their financial future than other generations,” Kelly LaVigne, vice president of consumer insights at Allianz Life, told Yahoo Finance.

Overall, just 55% of the generation believe and 69% of them said they are confident they can financially support all the things they want to do in the future, down from 73% last year and less than 76% last year millennials and 86% baby boomers.

Allianz Life conducted the online survey of 1,000 adults in February and March 2023 who had either investable assets of US$150,000 or more or an annual income of US$50,000 if single and US$75,000 per year if married .

Why is Generation X so far behind when it comes to retirement planning?

LAUREL, MD - MARCH 9: Shelly Pollard (left) helps her daughter Shelby Pollard study at her home in Laurel, Maryland on March 9, 2020.  Shelly is part of the so-called

Shelly Pollard (left) helps her daughter Shelby Pollard study at her home in Laurel, Maryland on March 9, 2020. Shelly is part of the so-called “sandwich generation”, Generation X, who also look after older parents with their children. (Photo by Cheryl Diaz Meyer for The Washington Post via Getty Images)

Although it could easily be blamed on apathy or lack of commitment – traits of the generation

“The goal in retirement planning is to enjoy today without feeling like you’re sacrificing tomorrow’s dreams, but the generation.”

“Many in this generation are caring for children and aging parents at the same time. When so many people are counting on you, it’s easy to put yourself on the back burner,” he said. “But as retirement age approaches, the pressure on Generation X increases.”

With this responsibility comes higher consumer prices.

More than two thirds of the working generation

In fact, 67% of people surveyed by Allianz say their income hasn’t kept pace with the rising cost of living, up from 54% last year.

What does Generation X expect when they retire?

Her solution: Almost half (47%) of all working members of the generation

While the Prudential poll found that 58% believe Social Security will be their primary source of income for retirement, Northwestern Mutual’s poll found that only 45% were “very or reasonably confident” that Social Security will be there, to support them when they need it.

(Source: Prudential)

(Source: Prudential)

That makes sense, as current projections suggest the reserves of the Social Security Trust Fund will be exhausted by 2033 if no policy action is taken when the oldest members of Generation X reach full retirement age. At this point, Social Security can only pay out 77% of benefits.

Pensions are also a thing of the past. According to Prudential, only 20% of the generation plan

“We’re entering a new era where people rely on their defined contribution plans for retirement, and very few fortunate people other than government employees have defined benefit plans that they can use in retirement,” said Tricia Rosen, certified Financial planner with Access Financial Planning in Andover, Massachusetts, told Yahoo Finance.

And while home equity has historically often been a small sum to fund retirement, just under 16% of Gen Xers plan to use the value of their home to fund their retirement years.

No financial plan available

Many Gen Xers also bury their heads in the sand when it comes to even focusing on their future.

Despite knowing that they are admittedly not in good financial shape for retirement, according to Prudential’s survey, nearly half don’t spend time each week thinking about retirement, while two-thirds don’t have a strategy for retirement, which many financial advisors say is a is the real sticking point.

“Generation Xers didn’t take the time to make a financial plan,” Barbara Pietrangelo, a board-certified financial planner at Prudential in Ada, Michigan, told Yahoo Finance. “Anyone who has a plan usually feels much better off.”

But a quarter of respondents polled by Allianz say, “Retirement is too far away for me to think about it now,” while nearly half say they’re not even thinking about saving for retirement right now can and just try to take care of everyday life -daily expenses.

It’s fair to say that it can’t be the case that they switch off carefree. There are signs that Gen Xers are indeed concerned and are becoming increasingly aware that time is not on their side. According to the Allianz Life study, only a quarter of the generation gives

“You’re beginning to reach the crucial window in preparing for retirement, which is typically about 10 years before you retire,” said Allianz’s LaVigne. “At this point, a lot of people are at a stage in life where they’re really focused on retirement — their kids are grown, they’re probably making more money, and they’ve already made big purchases like buying a home.” This is the time when many people can really start making an effort.”

(Source: Prudential)

(Source: Prudential)

“It can start with taking action and just setting goals, then prioritizing those goals and reviewing them regularly,” added Pietrangelo. It’s also imperative to maximize contributions to retirement savings — including catching up when they hit 50.

The Prudential poll found that many members of Generation

“The bottom line is that while time is running out to plan, there is still time to act,” Mitchell said. “The data represents an opportunity for Generation X to mobilize and organize.”

Kerry Hannon is a senior reporter and columnist at Yahoo Finance. She is a workplace futurist, career and retirement strategist, and the author of 14 books, including In Control at 50+: How to Succeed in The New Work of Work and Never Too Old To Get Rich. Follow her on Twitter @kerryhannon.

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