Gen Xers Fret About Retirement Savings Gap

Lack of a Plan

Gen Xers’ lack of a plan manifested in several ways, according to the survey. Non-retired Gen Xers are allocating on average 32% of their assets earmarked for retirement to cash despite their time horizon and sizable retirement savings gap. 

Asked why they are investing their retirement assets in cash, almost 63% said they fear losing their money, and 24% said they are not sure how best to invest. 

The survey also found that Gen Xers are preparing to make do with less support from Social Security in retirement. Just 11% of non-retired Gen Xers said they will wait until 70 to receive their maximum Social Security benefit payments. 

Forty-seven percent reported being concerned that Social Security may run out of money, compared with 44% of millennials and 38% of non-retired boomers fearing potential insolvency for Social Security. 

“As the first generation to head into retirement without the safety net of a pension plan, the stakes are higher for Generation X and the margin for error is lower,” Boyden said. 

“Not only are Gen Xers facing a formidable savings gap, (but) our findings suggest a knowledge gap is a formidable headwind that’s threatening to prevent many from reaching their dream retirement.” 

Money Worries

Eighty-four percent of non-retired Gen X survey participants said they are concerned — terrified, even — about the absence of regular employment paychecks in retirement, compared with 79% of millennials and 74% of non-retired boomers.

Millennials spend 1.7 hours a day on average and Gen Xers 1.5 hours worrying about money. Boomers are somewhat less apprehensive, spending 0.8 hours fretting about money.

Sixty-six percent of non-retired Gen Xers worry that they will not be able to grow their workplace retirement plan to the level they had hoped. Sixty-four percent of millennials and 61% of non-retired boomers share this concern.