Two-Thirds of Gen X Lack Confidence in Retirement

The recent economic recession impacted many Gen Xers’ financial savings, according to a report.

The study for the Insured Retirement Institute’s (IRI) report, “Retirement Readiness of Generation X: An Overview of the Next Generation of Retirement Investors,” found nearly two-thirds (65%) of the members in Generation X lack confidence that they will have enough money to live comfortably in retirement, to cover medical expenses during retirement and to pay for the cost of their children’s higher education.  

Nearly a quarter (23%) of Gen Xers stopped contributing to their retirement accounts during the recession, 15% made early withdrawals from their 401(k) plans and more than one-fifth (22%) stopped contributing to college savings plans.  

Only 41% of Gen Xers have tried to figure out how much money they will ultimately need to save, and among those who have saved, half have amassed less than $100,000. Thirty-seven percent of Gen Xers indicated they have consulted a financial adviser. Among single Gen Xers, this decreases to one-fifth.  

Fifty-four percent of female Gen Xers rated themselves as having little to no investment knowledge, compared to 37% of male Gen Xers.  

Of Gen Xers who identified an anticipated retirement age, the average age was 64, indicating a retirement period of more than 20 years.  

IRI commissioned Woelfel Research Inc. to conduct a survey to determine how retirement is viewed by individuals in their 30s and 40s. The research was conducted by telephone interviews with 802 adult Americans ages 30 to 49, from November 10 to 22, 2011.  

The report is here.