The majority of Gen Xers believe their retirement savings will cover basic expenses as well as leisure and travel, but the fact of the matter is, 40% have no retirement savings, the Insured Retirement Institute (IRI) learned in a survey. This is up from 35% in 2016. In addition, 66% have not tried to figure out how much they will need to save in order to retire.
The oldest of the members of Generation X are only 10 years away from turning 65, IRI notes. “Time is running out for Gen Xers to save for a financially secure retirement,” says IRI President and CEO Cathy Weatherford. “Unfortunately, fewer Gen Xers are saving for retirement or utilizing professional financial advice than in previous years. The top three retirement risks Gen Xers are most concerned about are changes to Social Security, high health care costs and running out of money—and financial advisers are uniquely positioned to help them effectively plan for these concerns.”
Sixty-seven percent of Gen Xers say they are satisfied with their lives from a financial standpoint, up from 64% in 2016. While 60% have money saved for retirement, this is down from 65% in 2016.
Among those with retirement savings, 70% have less than $250,000 saved, down from 80% in 2016. However, 23% have $250,000 or more saved, up from 12% in 2016.
Sixty percent think the government should make it a legal requirement for employers to offer 401(k) plans, and 81% would like to be offered the option to take a portion of their savings in monthly guaranteed income.
Sixty percent think they have enough money saved for retirement to cover some (36%) or extensive (24%) travel and leisure activities.
Asked what their top three retirement fears are, Gen Xers say changes to Social Security (66%), higher than expected health care expenses (64%) and running out of money (59%).