Half of Generation X have little to no savings for their retirement, according to a Prudential Financial survey.
Key Details
- More than half of Generation X—including people born between 1965 and 1980—have insufficient savings for their retirement.
- A prudent Financial survey of 2,000 Gen Xers found that 35% of the age group have less than $10,000 in their retirement savings, and 18% have nothing saved for retirement, Yahoo Finance reports.
- The oldest Gen Xers are just a decade away from retirement age.
- Previous generations were able to rely on pension plans and similar programs, but these began to fade away during Gen X’s lifetime.
Why it’s news
Around 65 million adults in the U.S. make up Gen X, and a large percentage of them are unprepared for retirement. In the next decade, this could represent a significant problem for the U.S. economy as retirees rely almost exclusively on Social Security benefits and assistance from family.
While many Gen Xers do not have a retirement savings account, nearly half worry that they will outlive what savings they do have, according to a Northwestern Mutual survey.
Still, 55% of Gen Xers think they are better off financially than previous generations at their age. Around 69% say they are confident in their ability to support their lifestyle, but this is a decrease from 73% who said the same last year, Yahoo Finance reports.
Unlike other generations, Gen Xers have more financial responsibilities to consider. Many Gen Xers are still supporting their children and are financially helping their now-retired parents. These financial focuses decrease Gen Xers’ ability to set aside retirement funds.
With higher consumer prices, Gen Xers are facing even more financial concerns. They still have just as many financial responsibilities, but their costs have increased. Over two-thirds of Gen Xers in the workforce are worried about how inflation will affect their ability to save for retirement.
In anticipation of an insufficient retirement account, nearly half of Gen Xers plan to retire late. Another 40% plan to work part-time even after retirement, Yahoo Finance reports. The majority, around 58%, plan to rely on Social Security as a primary source of income during their retirement, but only 45% are “very or somewhat confident” that Social Security will be available to support them.
Current projections suggest that the Social Security trust fund reserves will be depleted by 2033—about the time that the oldest Gen Xers will reach retirement age. Few Gen Xers have pension funds, further reducing the reliable income available in their retirement. Except for government employees, few workers have access to a pension.
