Recent research from Northwestern Mutual finds that Gen X women believe they will need $2.1 million on average to retire comfortably. This is substantially more than women in other generations say they will need: Generation Z, $1.2 million; millennials, $1.5 million; and baby boomers and older women, $902,000.
Northwestern Mutual noted, however, that the biggest generational difference between women concerns their attitudes and beliefs. Sixty percent of Gen Z women think they will be financially prepared to leave the workforce when the time comes, while only 40% of Gen X women agree.
The research findings show why. With just $95,000 saved on average, Gen X women are far from their retirement goal — they are looking at a gap of $2 million.
Forty-two percent of Gen X women described themselves as financially insecure. About 10% also said they are currently unemployed and unable to work because of an injury or an illness.
It can be stressful to know retirement is on the horizon and not be prepared, Kamilah Williams-Kemp, chief product officer at Northwestern Mutual, observed in a statement.
"Now is the time for Gen X women to convert their anxiety into confidence with a plan — specifically, a comprehensive financial plan created with an advisor who gets you," Williams-Kemp said. "Their experience should also be a wakeup call for younger women that building a great plan now can help make the most of the time to save, and reduce the worry down the road."
The new research findings come from Northwestern Mutual's 2024 Planning & Progress Study, which is based on a Harris Poll conducted online in January among 4,588 U.S. adults.
According to the survey, only 36% of women said they know how much money they will need to retire comfortably, compared with 52% of men. A quarter of women reported that they have less than their current annual income saved for retirement.
