Gen Xers Face Retirement Anxiety: Are They Ready?
Are you a Gen Xer feeling anxious about retirement? You’re not alone. The cohort once labeled as the “slacker generation” is now facing the reality of retirement, and many are not feeling as prepared as they would like to be.
According to a recent study by Allianz Life Insurance, only 62% of Gen Xers feel confident about their ability to financially support their desired lifestyle in retirement. This is significantly lower than the confidence levels of baby boomers (82%) and millennials (77%). With the oldest Gen Xers just a few years away from retirement, the pressure is on to start planning and saving now.
One of the leading concerns among Gen Xers is a lack of savings, with 55% wishing they had saved more. Daily expenses, credit card debt, and housing debt were cited as the main obstacles to saving. Additionally, Gen X lags behind other generations in taking key steps to prepare for retirement, with only 35% currently working with a financial professional and 58% lacking any written financial plans.
Studies have shown that Gen X is more anxious about retirement than boomers and millennials, with many expecting to work longer than they initially planned. The Schroders 2023 U.S. Retirement Survey revealed that Gen X workers believe they will need over $1.1 million in savings to retire comfortably, but expect to have only around $660,000 saved. The National Institute on Retirement Security also found that Gen X has the largest wealth gap, with the top 25% having $250,000 saved on average, while the bottom quartile has only around $35,000.
It’s clear that Gen Xers need to take action now to secure their financial future in retirement. Working with a financial professional, creating a written financial plan, and saving as much as possible are all crucial steps to take. As Kelly LaVigne, vice president of consumer insights at Allianz Life, points out, retirement is more than just hitting a certain savings goal – it’s about creating a sound retirement income strategy that will ensure your money lasts.
If you’re a Gen Xer feeling unprepared for retirement, now is the time to take control of your personal finances. Sign up for Get Your Due, a six-week email bootcamp that will help you take charge of your financial future. Don’t let retirement anxiety hold you back – start planning now for the retirement you deserve.
