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Generation X Losing Confidence in Retirement

While Baby Boomers feel confident in their financial situations once they retire, and millennials are feeling better about theirs, the same can’t be said for Generation X. GenXers are exceedingly less confident in their retirement prospects, according to a few new studies.

According to a new report from Retirement Living, 75 percent of Baby Boomers say they feel they will have enough money to live comfortably in retirement. That percentage for Generation X is 35 percent, according to the study.

Surely the generation after Gen X must be hurting even more, right? Not so.

“While 68% of baby boomers and 67% of millennials are certain they’ll have enough for a comfortable retirement, that figure drops to 59% for Generation X, according to a recent report by Employee Benefits Research Institute cited by FA magazine.

A few more interesting items from the Retirement Living survey include the following:

  • 75 percent of Baby Boomers feel like they have enough money to live comfortably during retirement and only 35 percent of Gen X’ers feel like they’ll be able to live comfortably during retirement.
  • Pensions and 401(k)s are king for Baby Boomers while 401(k)s and IRAs are the two most popular ways Gen X’ers are saving for retirement today.
  • 73 percent of Baby Boomers currently rely on Social Security as a portion (25 to 100 percent) of their monthly income, however, 85 percent of Gen X’ers are expecting to rely on Social Security for at least 25 to 100 percent of their monthly income.
  • Just over 50 percent of Baby Boomers and Gen X’ers saved or will have saved $700,000 or less. Retirees (Baby Boomers) feel that’s enough while those planning for retirement (Gen X’ers) don’t.
  • More females are saving for retirement. Baby Boomers who saved were around 65 percent male and 35 percent female. Gen X’ers who are saving are close to 50 percent male and female.
  • Top three things Baby Boomers wish they would’ve done differently: investing differently or played the stock market better, reduced spending or lived on a budget, invested more in a Roth IRA as opposed to a traditional IRA.
  • For those not saving for retirement, stagnant wages, student loan debt and the cost of living were the top reasons given for why they aren’t able to save for retirement.It’s not all doom and gloom for Generation X, however. They are saving more than their millennial counterparts with 65 percent of Generation X members reporting having savings and only 57 percent of millennials, according to the study. In fact, 13% of Gen Xers have saved $500,00 or more, the institute says, according to FA magazine.It’s not uncommon to feel less than confident when it comes to retirement planning, that’s why you should choose a professional to guide you through the process and help you reach your goals.  

  1. https://www.retirementliving.com/retirement-preparedness-study
  2. https://www.fa-mag.com/news/gen-x-lack-confidence-in-managing-their-finances-51271.html
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