It remains to be seen whether or not Gen Xers can change their savings and spending habits to catch up, EBRI says.
Tag: Generation X
Defined contribution (DC) plan design and financial advice can help Generation X, who lacks financial stability and is falling short in retirement savings, improve retirement preparedness.
Because people are living longer, healthier lives, the Wells Fargo Investment Institute has suggested different ways that Millennials, Generation X and Baby Boomers can successfully save for retirement.
Among all age groups, 76% think people in their generation will have a harder time achieving financial security in retirement than their parents, the Transamerica Center for Retirement Studies found.
According to an analysis from the Employee Benefit Research Institute (EBRI), single Gen X females are the only cohort with at least 50% of households having a deficit.
Three-quarters of Baby Boomers think they will have enough money to live comfortably during retirement, but only 35% of Gen Xers share this optimism.
Nearly half owned their funds only through their employer-sponsored retirement plans, according to the ICI.
They also believe having an adviser they can trust is important for their financial confidence.
They are on track to replace 75% of their income, compared to 64% for Americans overall.
IRI President and CEO Cathy Weatherford says financial advisers are uniquely positioned to help Gen X effectively plan for their retirement concerns.
Among advice attributes respondents to a T. Rowe Price survey said they would like are ease of use, inclusion of alerts about critical developments in their account and not requiring a great deal of their time.
They earn less than older generations, are less likely to participate in a retirement plan, and will have to contend with longer life spans and rising health care costs.
More than half of this generation currently does not have an adviser.
The Center for Retirement Research projects that 40% of those born between 1976 and 1985 will be unable to replace 75% of the income they received between the ages of 55 and 54 when they reach age 70.