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June 18, 2024 at 02:44 PM
What You Need to Know
- On average, Gen Xers haven't saved enough for a retirement that's likely to be longer than they expect, Natixis finds.
- Many are going it alone when it comes to retirement planning, yet knowledge gaps are common.
- Almost 80% of respondents said they preferred to speak with advisors in person.
Survey results released Tuesday by Natixis Investment Managers show Generation X is coming to terms with how the markets, economy and family life are shaping their retirement planning. Yet there’s still a disparity between Gen Xers’ expectations for retirement and reality.
North American Gen Xers want to leave work at age 60 and anticipate their retirement lasting 20 years, which is a shorter period than most retirees experience, according to Natixis IM. The reality, it says, is that this group of investors, whose median household income is $150,000, have median retirement savings of only $250,000 — not enough to last more than 20 years.
“Gen Xers are the Jan Brady of demographics,” Dave Goodsell, executive director of Natixis Center for Investor Insight, said in a statement. “They’re sandwiched between baby boomers and millennials, and they’ve been overlooked. Now many find themselves caring for both aging parents and growing children while under pressure to fund their retirement.”
Goodsell said the survey results underscore Gen Xers’ distinct challenges as they consider their retirement plans.
“The original latch-key kids took care of themselves — self-sufficiency is part of their DNA — but maybe it’s time to ask for some help,” he said.
Natixis IM’s global survey of individual investors was conducted by CoreData Research in the spring of 2023 among 8,550 individual investors in 23 countries, including 2,928 Gen Xers.
Flying Solo
The survey found that 78% of North American Gen Xers believe that funding their retirement is increasingly their own responsibility, rather than that of public and private pensions. As a result, many anticipate having to delay or make significant adjustments to their retirement plans.
Forty-four percent of North American Gen Xers accept that they may have to work longer, and 30% worry that they will be forced to return to work after retirement. Twenty-seven percent are concerned that they won’t be able to work as long as they would like.
Growing public debt is a top-of-mind concern for Gen Xers, with 76% worried that it will result in reduced retirement benefits. Fifty-seven percent believe it will be hard to make ends meet without benefits.
Three-quarters of North American Gen Xers in the survey said that more employers should offer pensions instead of defined contribution plans.
Health care costs are also a top concern of this cohort, with 31% of North American respondents saying they are afraid of going broke in the face of health care expenses in retirement.
