As Oldest Gen Xers Approach Age 60, Many Are Unprepared for Retirement and Concerned About Outliving Their Assets

Nearly Half of All Gen Xers Have Not Done Any Retirement Planning

According to the Schroders 2024 U.S. Retirement Survey, just 14% of Americans between the ages 44 and 59 (Generation X) believe they have saved enough money for retirement. When asked how much money is needed to retire comfortably, Gen Xers say on average it will take $1,069,746 in savings, yet they expect to have just $602,944 saved by the time they leave the workforce. The resulting savings gap of $466,802 is larger than the shortfall Millennials ($322,128) and Baby Boomers ($353,069) expect to face.

Millennials (ages 28-43) believe they will need $1,171,067 to retire comfortably and expect to have $848,939 saved, while non-retired Baby Boomers (ages 60-79), believe it takes $1,004,742 to retire comfortably, and expect to have $651,673 on hand.

“If planning and saving don’t become higher priorities, Gen X could become the lost-retirement generation,” said Deb Boyden, Head of US Defined Contribution, Schroders. “As the first generation to come of age with 401k plans rather than traditional pensions as their primary retirement savings, many Gen Xers missed out on the automation features that were not available in the early years of 401ks, such as auto enroll, auto escalate and QDIAs [Qualified Deferred Investment Alternatives] for a good part of their savings. However, even the oldest Gen Xers have several years left to better prepare financially before reaching their full retirement age.”

More than half of all Gen Xers (54%) are concerned or very concerned about outliving their assets in retirement compared to 40% of Baby Boomers and 50% of Millennials.

Notably, members of Generation X are the least likely to be working with a financial advisor. Just 27% of Gen Xers surveyed are currently working with a financial advisor compared to 37% of Baby Boomers and 31% of Millennials. Further, 48% of Gen Xers say they have not done any retirement planning, which exceeds the 41% of Millennials and Baby Boomers that have not done any planning.

The absence of a plan or guidance from a financial advisor could explain why 60% of non-retired Gen Xers are not confident in their ability to achieve their dream retirement compared to 48% of non-retired Millennials and 52% of non-retired Baby Boomers.

“It’s never too late to seek the services of a financial advisor or explore investment solutions tailored to help retirees grow and safeguard their savings,” added Boyden. “With more than half of Generation X worried about outliving their assets, a plan for generating income in retirement that includes an informed decision about when to apply for Social Security benefits could provide much-needed peace of mind,” added Boyden.

Additional findings:

• Despite their time horizon and savings shortfall, Gen Xers are holding, on average, 35% of their assets earmarked for retirement in cash. When asked about the reasons for allocating retirement savings to cash, 64% of Gen Xers say it’s out of fear of losing too much money if the stock market goes down.

• More than half of retired Gen Xers (53%) are concerned or very concerned about having to return to work to pay their bills compared to 20% of retired Baby Boomers.

• One-in-four non-retired Gen Xers (26%) are terrified about the idea of no more regular employment paychecks in retirement, compared to 22% of non-retired Millennials and 15% of non-retired Baby Boomers.

• Just 10% of Gen X plans to wait until age 70 - the age at which an individual reaches their maximum monthly benefit – to take Social Security benefits. Notably, 43% of Gen Xers say they are planning to take benefits before age 70 because they are concerned Social Security may run out of money or stop making payments, compared to 24% of Baby Boomers and 37% of Millennials with the same plan and concern.

For more information on the Schroders 2024 U.S. Retirement Survey, visit here.

About the Survey

The Schroders 2024 US Retirement Survey was conducted by 8 Acre Perspective among 2,000 US investors nationwide ages 28-79, including 552 Gen X investors (ages 44 – 59). The survey was conducted from March 15 to April 5 in 2024.

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Schroders is a global investment manager which provides active asset management, wealth management and investment solutions, with £773.7 billion (€912.6 billion; $978.1 billion) of assets under management at 30 June 2024. As a UK listed FTSE100 company, Schroders has a market capitalisation of circa £6 billion and over 6,000 employees across 38 locations. Established in 1804, Schroders remains true to its roots as a family-founded business. The Schroder family continues to be a significant shareholder, holding approximately 44% of the issued share capital.

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