Gen X Women Say They’ll Need $2.1 Million to Retire Comfortably

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.

“When I see statistics like this, the first thing I wonder is if women are feeling overly anxious or if men are feeling more confident than they should be,” Williams-Kemp said. “The real answer is likely somewhere in the middle — and as a result, both should seek ways to feel more secure and stress test the financial plans and assumptions they’ve made.”

Gen Z’s Confidence

Gen Z women in the survey said they aim to retire by age 62, nine years sooner than boomers and older women. And they expect to pay off their college loans by age 33, a full decade earlier than their millennial counterparts. 

Forty percent of younger women also reported that their household income is growing faster than or keeping pace with inflation, compared with 39% of millennials and 33% of older women. Fifty-seven percent of Gen Zers said they will spend the same or more in 2024, while only 37% expect to spend less.

Sources of Advice

The study found that Gen Z and millennial women are more inclined than older women to put their trust in family members and spouses for financial advice. In contrast, Gen X and older women said a financial professional is their most trusted source of financial advice. 

Twelve percent of all women surveyed said they seek advice from other sources, such as online financial sites, local news and business news.

At the same time, 26% of all women reported that they have not received advice from anyone, rising to 32% of boomers and older women.

“Regardless of your age, circumstances or expertise, find a professional financial advisor who you trust and put a solid plan in place,” Williams-Kemp said. “Those two steps can make a world of difference toward achieving greater certainty in the near term and financial security down the road.”

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