WASHINGTON, D.C. – The Insured Retirement Institute (IRI) today released a new research report on the retirement outlook for Generation X (Gen X) that shows a decline in retirement confidence and savings among members of the cohort. GenXers, born between 1962 and 1981, reported that their retirement savings have dropped 15 percent over the last two years, from median retirement savings of $70,400 in 2012 to $59,800 today. During the same time, the percentage of GenXers lacking confidence in having sufficient savings to live comfortably in retirement doubled from 20 percent in 2012 to 42 percent today.
“It appears the lasting effects of the recession and prolonged labor market woes are taking a hit to GenXers’ confidence and their savings,” said Cathy Weatherford, IRI President and CEO.“Fortunately, with most GenXers still at least two decades from retirement age, there’s time to steer them back on track toward retirement security. It will begin with increasing education, which can lead to better savings behaviors and better retirement outcomes.”
When it comes to financial matters, 30 percent of GenXers rate themselves as being highly knowledgeable, and only 11 percent have the same self-assessment when it comes to investing. Despite these low levels, 77 percent of GenXers are not consulting a financial planner. Yet those who are working with a financial professional have median retirement savings of $90,400, more than double the $45,500 accumulated by their peers who are planning for retirement on their own.
Other key findings from the report:
· Only 65 percent of GenXers have money saved for retirement, down from 72 percent in 2012.
· Of those GenXers with savings, more than four in ten (42 percent) have retirement savings of less than $50,000.
· Only 35 percent of GenXers have tried to determine a retirement savings goal.
· During the past year, 36 percent of GenXers experienced difficulties paying their rent or mortgage, 21 percent stopped contributing to a retirement plan, and 14 percent prematurely withdrew retirement assets.