Even with a decade or two left, Gen Xers are increasingly worrying about retirement, and more so than their older colleagues, finds a new survey from Allianz Life.
The 2024 Annual Retirement Study found that while 82% of Baby Boomers and 77% of Millennials are confident in their ability to financially support themselves, just 62% of Gen Xers feel the same.
A leading worry among the Sandwich Generation is the idea that they haven’t allocated enough towards retirement, as 55% say they wish they would have saved more money for the long-term. This concern is exacerbated by the fact that many continue to battle other pressing financial matters—64% are paying off debt, 58% are building an emergency fund, and 55% are trying to maintain or improve their credit score. Others say that expenses for day-to-day necessities (61%), credit card debt (40%), and housing debt (39%) are keeping them from saving for retirement.
“Gen Xers are reaching crunch time for retirement planning,” said Kelly LaVigne, vice president of Consumer Insights at Allianz Life, in a statement. “For Gen Xers, retirement is no longer this far off idea. That can feel stressful, but by preparing now, they can create a strategy that will help them seek their ideal retirement. The good news is that it is never too late to prepare for retirement. You can wish you started sooner, but you’ll never wish that you waited longer.”
Allianz Life’s study also segmented Gen X respondents by race and ethnicity, finding that Black/African American (68%) and Asian/Asian American (67%) respondents were likelier than white (60%) and Hispanic (58%) respondents to feel confident over their retirement readiness. Hispanic Gen Xers (63%) were likelier to wish they have more retirement savings, compared to Black/African American (56%), white (55%), and Asian/Asian American (52%) Gen X respondents.
Creating a financial plan
The survey notes that Gen Xers are less likely to utilize financial guidance, or even have a financial plan organized. Thirty-five percent of Gen Xers currently work with a financial professional, compared to 46% of Millennials and 54% of Baby Boomers. While less likely to feel confident in their savings, white (37%) and Hispanic (35%) Gen Xers tend to work with financial advisors compared to Asian/Asian America (29%) and Black/African American (24%) respondents.
The majority of Gen Xers do not have a written financial plan (58%), compared to 52% of Boomers and 37% of Millennials.
Despite this, a growing number of Gen X respondents are starting to seriously consider their retirement needs. Sixty-three percent say one of their top three goals within the next five years is to save enough in order to live a comfortable retirement—a 6% rise from 56% just last year.
SEE ALSO:
- Millennials, Gen Z More Hopeful About Retirement Than Gen X, Boomers
- Gen Xers Know They’ll Need a Lot to Retire—But They Don’t Have It
- Gen Xers Face Retirement Unreadiness
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.