Tuesday , 20 February 2024

Gen Xers Are Totally Unprepared For Retirement – How About You?

Introduction

Gen Xers face significant fears and challenges – often beyond those of Millennials and Baby Boomers – when it
comes to retirement according to a recently released survey* from asset management firm Schroders.

An article by Lorimer Wilson based on information sourced from Schroders.com

Survey Findings

The Generation X cohort – people between ages 43 and 58 :

  • believes it will take $1,112,183 in savings to retire comfortably, yet
  • expects to have only about $661,013 saved, representing a retirement savings short-fall of $451,170 and
  • hasn’t even started (45%) doing any retirement planning,
  • 66% worry they won’t grow their workplace retirement plan as high as hoped,
  • 84% are concerned or terrified about having no more regular paychecks in retirement,
  • 61% are not confident in achieving a dream retirement, and
  • only 11% will wait until 70 to receive their maximum Social Security benefit payments because
  • 47% fear Social Security may run out of money.

Action Required

Unfortunately, as the survey revealed, while it won’t be easy for the Gen-X cohort to close the gap, they need – indeed it is crucial – for them to improve their retirement readiness before it’s too late. They need to act now and

  • develop a retirement plan,
  • increase their savings rate,
  • and invest more appropriately.

*About the survey
The Schroders 2023 US Retirement Survey was conducted by 8 Acre Perspective among 2,000 US investors nationwide ages 27-79, including respondents between ages 27-44 for the first time. The survey was conducted from February 13 to March 3 in 2023. The median household income for working Americans surveyed was $75,000.