Gen Xers Approaching Retirement with Financial Concerns: Study

Gen Xers Facing Retirement with Financial Uncertainty

As the cohort once labeled the “slacker generation” approaches retirement age, many Gen Xers are feeling the weight of financial unpreparedness. According to Allianz Life Insurance’s 2024 annual retirement study, only 62% of Gen Xers feel confident about their ability to financially support their desired lifestyle in retirement, a stark contrast to the 82% of baby boomers and 77% of millennials who feel more secure.

With the oldest Gen Xers just a few years away from retirement, the pressure to plan for this milestone is mounting. Kelly LaVigne, vice president of consumer insights at Allianz Life, emphasized the importance of preparing now to create a strategy for a successful retirement.

While boomers are already enjoying retirement and millennials have more time to plan, Gen Xers are facing unique challenges. High inflation has eroded fixed incomes for many boomers, leading some to “unretire” due to the rising cost of living. Millennials, on the other hand, are grappling with heavy student loan debts and high mortgage rates, delaying their financial milestones.

A leading concern among Gen Xers is their lack of savings, with 55% expressing regret over not saving 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.

Studies have shown that Gen Xers are more anxious about retirement than boomers and millennials, with many expecting to work longer than initially planned. The Schroders 2023 U.S. Retirement Survey revealed that Gen X workers estimate needing over $1.1 million in savings to retire comfortably but expect to have around $660,000 saved.

The National Institute on Retirement Security found that Gen X also has the largest wealth gap, with the top 25% having an average of $250,000 saved compared to the bottom quartile with around $35,000.

Allianz emphasized the importance of a sound retirement income strategy that goes beyond simply saving a certain amount of money. Planning for contingencies and ensuring that assets are used efficiently to provide income in retirement is crucial for financial security in the later years.

As Gen Xers navigate the challenges of retirement planning, it is clear that a proactive approach is essential to ensure a comfortable and secure future.