Gen X Retirement Confidence Drops Below Other Generations
Generation X workers report lower retirement confidence and savings than baby boomers or millennials, with many expecting to work past age 70.
A report from the Transamerica Center for Retirement Studies indicates that Generation X workers feel less secure about their retirement than baby boomers or millennials. Only 18% of Gen X workers express high confidence in their ability to retire with a comfortable lifestyle, while the median household retirement saving for the group stands at $113,000, far below the $263,000 median for baby boomers.
Financial insecurity is driven by several systemic factors. Data from the Bureau of Labor Statistics shows that workers aged 55 to 64 face longer periods of unemployment due to implicit age discrimination. Additionally, caregiving responsibilities have worsened the financial standing of 35% of caregivers. Samir Shah, CEO of CareScout, noted that families and society suffer economically when individuals must leave the workforce to provide care.
These pressures have shifted retirement expectations, with more than one in three Gen X respondents stating they will likely not retire until age 70 or older, or may never retire. While nearly half of the group relies on 401(k) plans as their primary income source, 75% express concern over the future solvency of Social Security. Many in this generation believe a minimum of $750,000 is required to feel financially secure.
