Gen Xers Approaching Retirement with Financial Concerns

Gen Xers Feeling Anxious About Retirement as They Approach Crunch Time

As the cohort once dubbed the “slacker generation” starts to edge closer to retirement, many Gen Xers are feeling the pressure of not being adequately prepared. 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 significantly lower percentage compared to baby boomers (82%) and millennials (77%).

With the oldest Gen Xers just a few years away from retirement, the looming reality of this milestone is causing increased anxiety among the generation. Kelly LaVigne, vice president of consumer insights at Allianz Life, emphasized the importance of preparing for retirement now to create a strategy that will lead to an ideal retirement.

While boomers are already enjoying retirement and millennials have more time to plan, Gen Xers are facing unique challenges. High inflation has eroded the fixed incomes of many boomers, leading some to “unretire,” while millennials are grappling with student loan debts and high mortgage rates.

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. The Allianz survey also revealed that Gen X lags behind other generations in taking key steps to prepare for retirement, with fewer working with financial professionals and having written financial plans.

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

Additionally, a study from the National Institute on Retirement Security highlighted the wealth gap within Gen X, with the top 25% having an average of $250,000 saved compared to just $35,000 for the bottom quartile.

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 Gen Xers as they navigate this critical phase of their financial journey.