Gen-Xers Fear Bleak Retirement, Survey Finds

“At the same time, their goals for retirement are lofty,” Harrington added. “Like the generation before them, they want to be able to relax, travel, engage in their life passions, move to warmer climates, and help their families. Despite tough economic times, and the current lack of preparation, hope is not lost. Those that are not confident and haven’t adequately prepared can catch up.”

The study, conducted for eRollover.com by the Siena College Research Institute, polled a representative sample of 1006 U.S. residents between the ages of 29 and 49 extensively about their financial situation, savings, investments, retirement expectations, and plans to achieve their goals.

While 71% believe Social Security must be fixed to survive, and 67% of these Americans plan to count on those payments as at least a minor source of retirement income, Gen-Xers are divided on what should be done.

Other highlights of the study include:

• Even with dreams and plans for retirement, fewer than three in ten have a very clear and organized plan to save for retirement, and 41% believe their quality of life when retired will be worse than those who retired 15 or 20 years ago.
• On Social Security, 58% either strongly or somewhat agree that those who retire with significant wealth should have a reduced Social Security benefit based on their assets.
• Sixty percent, however, disagree with the idea of raising the retirement age to 70, and a plurality favor some form of privatization and increasing the payroll deduction to 14.4%.
• Despite their skepticism about Social Security, 27% expect it to be a major source of their retirement income and 40 percent expect it to be a minor source of income.
• Among the study group as a whole, only 15% had incomes greater than expenses, 46% track their incomes and expenses monthly, 50% have a savings account with a balance of at least $1000, 31% have at least six months of expenses saved, 48% have a 401K and 19% have a financial advisor.

Among those with incomes above $100,000, however, 29% had incomes greater than expenses, 52% budget more frequently than lower earners, 82% have a savings account with a balance of at least $1000, 59% have at least six months of expenses saved, 85% have a 401K and 38% have a financial advisor.