As the oldest members of Gen X turn 60 in 2025, more participants in the Sandwich Generation are beginning to think about what this new stage of life will look like.
According to new research from Northwestern Mutual’s 2024 Planning & Progress Study, 58% of Gen Xers say they anticipate their monthly income in retirement to be the same or more as their current monthly income. Slightly more than a quarter (27%) believe they will need less than they earn now to retire comfortably in the future.
However, just over half (51%) of Gen Xers surveyed said their current retirement savings are three times larger than their annual income or less. While this benchmark is personal to each participant, studies have shown that participants will likely need to save as much as 13 times over their yearly income. One study from T. Rowe Price estimated that those aiming to retire at age 65 will need to save between seven and a half to 13 and a half of their preretirement gross income.
As a result, 52% of Gen Xers who are not yet retired do not believe they will be financially ready for retirement when the time income. Coupled with the fact that most believe they will require or provide long-term care in the future without sufficient funds, the research finds that Gen Xers have the lowest confidence among any other generation surveyed.
However, Gen X participants still have time to work on savings to set themselves up for retirement success, Northwestern Mutual adds. First, participants should work with a financial professional and create an action plan to build wealth and protect savings. Furthermore, planning in advance for a long-term care event can relieve emotional and financial stress for participants and their families, says Kamilah Williams-Kemp, chief product officer at Northwestern Mutual.
“For millions of Gen Xers who are fast approaching 60, the difference between retiring on time and feeling comfortable or working longer and lowering retirement expectations will come down to financial planning,” she said. “It’s never too late to take action, but the challenge and the stakes rise the longer people wait.”
The 2024 Planning & Progress Study was conducted by the Harris Poll on behalf of Northwestern Mutual among 4,588 U.S. adults ages 18 or older.
SEE ALSO:
Gen Xers Doubt Their Ability to Retire Securely
Gen X to Inherit Major Wealth Transfer Over the Coming Decade
Gen Xers Nearing Retirement Report Median Savings of $50k
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
