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By 
July 07, 2023 at 02:30 PM
What You Need to Know
- According to a new survey, Gen Xers believe they will need more income than boomers or current retirees.
- However, Gen Xers’ savings will not produce enough supplemental income to meet their expectations.
- Advisors need to hone education and marketing efforts toward Gen Xers and apply lessons learned to millennials.
As their retirement approaches, 32% of Gen X workers in the U.S. worry that retirement savings will be insufficient to fund their expected retirement lifestyles, according to new research from the Insured Retirement Institute.
Their older counterparts, in contrast, are more confident, with 45% of baby boomers and 63% of retirees expecting their savings to last until they are 85 or older.
A further complication for workers in the 40-to-55 age group is that they are much less likely to expect retirement income from a public or private pension than boomers and current retirees.
Thirty-two percent also do not expect to receive Social Security in retirement — many believing, incorrectly, that their benefits will cease if the Social Security trust fund is depleted.
While this is currently projected to happen in 2034, two years after the first Gen Xers reach full retirement age, Social Security is expected to pay 76% of benefits after 2034, IRI said.
The research involved internet interviews conducted in March among 2,241 Americans aged 40 to 80.
A Fundamental Disconnect
According to the survey, Gen Xers believe they will need more income than boomers or current retirees (in today’s dollars). For example, 52% of Gen Xers say they will need $52,000 a year, compared with 46% of retirees and 42% of boomers, with similar disparities for those who say they will need $65,000 and those who say $75,000.
