Gen X Drew Financial Short Stick: Financial Finesse

Thirty percent of adults under 34 with full-time jobs have returned to their parents' homes in the last few years. Furthermore, millennials need to turn their attention to long-term planning, Carter said.

While 83% are contributing to their employer-sponsored retirement plan, only 74% are contributing enough to qualify for the employer match. Only 29% have estimated how much they'll need for retirement and just 17% say they're on track to replace 80% of their income.

"For every age group, retirement is their biggest vulnerability," Carter said. "Millennials are the only ones who aren't aware of it. The challenge could be bigger for younger groups and the track could be worse than it looks now."

Carter noted that the report only looked at respondents who were employed, and "one of the biggest hits for millennials has been finding a job."

Outside of their employer-sponsored plans, just over a quarter of millennials are contributing to an IRA.

While over half have made investing or getting out of debt priorities, their biggest priority is managing cash flow. One advantage they have, Carter said, is that many are coming out of college, where they likely weren't spending much. "It's easier for them to maintain that frugality because they're used to it."

Millennial respondents reported an overall lack of confidence in investing. Less than 30% said they are confident about their allocations and 38% have taken a risk assessment. Nearly two-thirds say they have a general knowledge about investments.

Millennials need to see the impact that saving now could have on their retirement, Carter said. "The threat is that their retirement isn't looking great. If they start saving now and saving aggressively, they could be in better shape than even the older generations."

Late Boomers Face Family Demands

Late boomers, those who are between 45 and 54, show remarkable improvements over Gen X. Their income is higher, with 46% earning between $75,000 and $150,000 per year, and 84% own their home. They're also more likely to contribute to educational savings accounts and have adequate insurance for their needs. Their financial wellness score is an even 5, which Financial Finesse says indicates they are demonstrating some personal finance skills, though they still have significant gaps.

As this group nears retirement, those gaps begin to appear. Eighty-five percent of respondents said retirement planning was a priority, by far the group's largest priority, but 75% don't contribute to an IRA, 20% aren't taking advantage of their company match and 5% aren't contributing to their work plan at all.

Financial Finesse noted that late boomers' propensity to plan for their families' needs with insurance and educational funds could be a hindrance to their own financial safety. Even when they do focus on their own needs, their priorities are slightly askew. The report found late boomers aren't doing enough to protect their wealth, noting that this age group should consider umbrella liability and long-term care insurance policies.

Only 40% of late boomers have young children, the report noted, so the group should see improvements in their day-to-day cash flow as older children leave home.

The report noted that the Medicare trust fund may be depleted in 2024, before most of this age group is able to take advantage of it, and Medicare and Social Security are also facing uncertain futures.

Early Boomers Still Unprepared for Retirement

At 5.6, early boomers between ages 55 and 64 have the highest financial wellness score from Financial Finesse, though in the same range as late boomers. Nearly a quarter earn between $100,000 and $150,000 and 15% make more than $150,000. These boomers are unlikely to have children at home, and consequently are better at cash management than other age groups.

Nearly 80% spend less than they make every month and almost all of them are paying bills on time. Nearly three-quarters have a comfortable level of debt.

Timing is also a factor in these older boomers' successes. They were better able to save and invest in the stock market boom of the late 20th century, which helped "cushion the blow" of the recession, according to the report. Reform proposals regarding Medicare and Social Security tend to exempt people older than 55 from cuts, which is a political boon for this group, the report noted.

So near retirement, however, early boomers' biggest vulnerability is being unprepared; 75% don't know if they're on track to retire. The two biggest things boomers need to keep in mind to protect their wealth is to plan for long-term care and to shift their portfolios to more conservative allocations, Carter said.