Many Gen-Xers facing retirement ‘nightmare’ due to lack of savings: report
Members of Generation X don’t have much stored in savings, according to a new report from the National Institute on Retirement Security (NIRS).
The report found that the “forgotten generation” faces a “dismal” retirement future. The typical Gen X household – with those born between 1965 and 1980 – has around $40,000 saved for retirement, while the bottom half of savers only have a few thousand banked.
“Generation X grew up in the shadow of the postwar economic boom that so greatly benefitted their generation predecessors, the Baby Boomers,” the report says. “Many in Generation X spent their formative years as the United States grappled with the oil crisis, ‘stagflation,’ and a growing sense of disillusionment following the Watergate crisis.”
Slightly over half of Gen-Xers have employer-sponsored retirement plans, the report found. Most members – regardless of race, gender, or income – are also failing to meet retirement savings targets.
Researchers blame an increase in college debt and bad luck in wider economic conditions for the lapse. They also note the rapid decline of pension plans, putting the burden of retirement planning more onto the retiree instead of an employer.
About 18 percent of Gen Xers have no retirement savings, the report states.
The NIRS advocates for additional structured retirement plans to make up for the decrease in pensions over time.
“Accruing savings takes time, and Social Security alone won’t provide enough retirement income,” NIRS research director Tyler Bond said in a statement. “So it’s critically important that we change course quickly. The status quo means we are looking at elder poverty for many Gen-Xers and pressure on their families for support.”
Gen X isn’t the only generation that could face retirement trouble. U.S. Census data found that nearly half of Baby Boomers and more than half of all workers don’t have any retirement savings.
Opinion polling released in May also found that less than half of Americans expect to live a comfortable retirement, a decrease from previous marks.
What are the main obstacles that Gen Xers face when it comes to saving for retirement?
Eration” is facing a retirement “nightmare” as they approach their golden years. Gen Xers, who are between the ages of 42 and 55, have accumulated only 45% of the retirement savings they will need for a secure retirement, leaving them vulnerable to financial difficulties in their later years.
The NIRS report reveals that Gen Xers are facing numerous obstacles to saving for retirement. The financial crisis of 2008, stagnant wages, high housing costs, and increasing debt levels are among the factors that have hindered their ability to build a substantial nest egg.
Additionally, Gen Xers have not had the same advantages as the baby boomer generation when it comes to employer-sponsored retirement plans. While nearly 80% of baby boomers had access to these plans at work, only 66% of Gen Xers have such benefits. This lack of access to retirement plans has had a significant impact on their ability to save for retirement.
Furthermore, the report highlights the poor financial literacy of many Gen Xers. A staggering 45% of them have no retirement savings whatsoever, and only 14% are confident in their knowledge of retirement savings.
The consequences of this lack of savings are dire. Many Gen Xers will likely rely solely on Social Security benefits in retirement, which may not be enough to cover their living expenses. They may face the choice between delaying retirement, working part-time, downsizing their homes, or relying on financial support from family members.
The NIRS report concludes that urgent action is needed to address the retirement crisis among Gen Xers. The report calls for policies that increase access to retirement savings plans, facilitate automatic enrollment in these plans, and provide financial education to improve Gen Xers’ retirement preparedness.
In conclusion, Gen Xers are facing a retirement “nightmare” as they enter their later years. It is crucial for policymakers, employers, and individuals to take immediate action to solve this crisis and ensure a financially secure retirement for this forgotten generation.
This article sheds light on a concerning reality for Generation X as retirement looms closer. Insufficient savings pose a bleak future, emphasizing the urgent need for financial planning and supporting policies to ensure a secure retirement for this generation.
This article sheds light on an alarming reality that Generation X is confronting—a gloomy retirement future due to insufficient savings. It is crucial to address this issue promptly and develop strategies to ensure a secure retirement for this generation.