Nearly two in three members of Generation X believe they will not have enough money to cover retirement expenses, a new report concludes.
The Insured Retirement Institute published this finding its report, “Retirement Readiness of Generation X: An Overview of the Next Generation of Retirement Investors,” which is based on telephone interviews with 802 adult Americans ages 30-49. This report explores the retirement preparations of GenXers and looks at their outlook for retirement and the issues that are shaping these expectations.
The report finds that nearly two-thirds (65%) of GenXers lack confidence that they will have enough money to live comfortably in retirement, to cover medical expenses during retirement and to pay for the cost of their children’s higher education.
The recent economic recession has had an impact on many GenXers’ financial savings, the survey adds.
Nearly a quarter (23%) of GenXers stopped contributing to their retirement accounts, 15% made early withdrawals from their 401(k) plans and more than one-fifth (22%) stopped contributing to college savings plans.
Among the report’s other findings:
- 41% of GenXers have tried to figure out how much money they will ultimately need to save, and among those who have saved, half have amassed less than $100,000.
- 54% of female GenXers rated themselves as having little to no investment knowledge. This compares to 37% of male GenXers.
- Of GenXers who identified an anticipated retirement age, the average age chose was 64, indicating a retirement period of more than 20 years.
- 37% of GenXers have consulted a financial advisor. Among single GenXers, this decreases to one-fifth.
The full report can be found here.