Gen X Approaching Retirement Crunch Time with Savings Regrets
Allianz Life study finds Gen Xers are less financially confident than boomers and millennials.
KEY FINDINGS:
- Only 62% of Gen Xers feel confident about being able to financially support all the things they want to do in life, compared to 82% of boomers and 77% of millennials
- 55% wish they would have saved more money for retirement
- 58% of Gen Xers do not have any written financial plan
Gen Xers have concerning doubts about their financial futures. While 82% of boomers and 77% of millennials feel confident about being able to financially support all the things they want to do in life, just 62% of Gen Xers said the same. Black/
“Gen Xers are reaching crunch time for retirement planning,” said
Regrets about savings
Gen Xers say they are trying to improve their financial confidence. The most common action Gen Xers say they are taking to help meet their long-term goals is working toward paying off debt (64%). This was followed by building up an emergency fund (58%) and making financial choices to maintain or improve their credit score (55%).
However, a leading worry for Gen Xers is that they have not saved enough for retirement. The majority of Gen Xers (55%) wish that they would have saved more money for retirement. In particular, Hispanic Gen Xers (63%) wish they would have saved more money for retirement, compared to Black/
“Saving more overall is foundational to retirement,” Lavigne said. “However, Gen X may need to take this a step further and remember that a retirement strategy isn’t just about one big final number in the bank. Once you retire, you are going to need to draw from those assets for income. A sound retirement income strategy will help use your assets efficiently and include contingencies for risks that can cause you to spend down savings faster than anticipated. You need to ensure the money lasts.”
Lacking a financial plan
While Gen Xers could benefit from guidance from a financial professional, few do. Just 35% of Gen Xers say they currently have a financial professional, compared to 46% of millennials and 54% of boomers. White (37%) and Hispanic (35%) Gen Xers are more likely to have a financial professional than Asian/Asian American (29%) and Black/
The majority of Gen Xers say they do not have any written financial plans (58%), compared to 52% of boomers and 37% of millennials.
Still, Gen Xers are at least increasingly thinking about retirement. Nearly two in three (63%) say one of their top three goals in the next five years is to save enough and make plans to live a comfortable retirement. This increased from 56% in 2023. Gen Xers who are Asian/Asian Americans (68%) were more likely to say this than white (61%), Hispanic (61%), and Black/African American Gen X respondents (55%).
“The guidance of a financial professional can help alleviate some of the anxiety around their financial futures,” said LaVigne. “A financial professional can help you create a financial strategy for your future and be there along the way to guide you on how to get there.”
*Allianz Life conducted the 2024 Annual Retirement Study online survey in February and
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