Gen X approaching retirement crunch time with savings regrets

MINNEAPOLIS – June 13, 2024  – Gen Xers, who are mostly in their late 40s and 50s, are approaching an important time in preparing to retire. Yet, Gen Xers are feeling less confident than ever about their finances and more worried about retirement than boomers or millennials, according to the 2024 Annual Retirement Study from Allianz Life.

 

Gen Xers have concerning doubts about their financial futures. While 82% of boomers and 77% of millennials feel confident about being able to financially support all the things they want to do in life, just 62% of Gen Xers said the same. Black/African American (68%) and Asian/Asian American (67%) Gen Xers were more likely than white (60%) or Hispanic (58%) Gen X respondents to say they feel confident. 

 

“Gen Xers are reaching crunch time for retirement planning,” said Kelly LaVigne, VP of Consumer Insights, Allianz Life. “For Gen Xers, retirement is no longer this far off idea. That can feel stressful, but by preparing now, they can create a strategy that will help them seek their ideal retirement. The good news is that it is never too late to prepare for retirement. You can wish you started sooner, but you’ll never wish that you waited longer.”

Regrets about savings

 

Gen Xers say they are trying to improve their financial confidence. The most common action Gen Xers say they are taking to help meet their long-term goals is working toward paying off debt (64%). This was followed by building up an emergency fund (58%) and making financial choices to maintain or improve their credit score (55%).

 

However, a leading worry for Gen Xers is that they have not saved enough for retirement. The majority of Gen Xers (55%) wish that they would have saved more money for retirement. In particular, Hispanic Gen Xers (63%) wish they would have saved more money for retirement, compared to Black/African American (56%), white (55%), and Asian/Asian American (52%) Gen X respondents. Those Gen Xers  who wish they would have saved more say that expenses for day-to-day necessities (61%), credit card debt (40%) and housing debt 39% is keeping them from saving more money from retirement.

 

 “Saving more overall is foundational to retirement,” Lavigne said. “However, Gen X may need to take this a step further and remember that a retirement strategy isn’t just about one big final number in the bank. Once you retire, you are going to need to draw from those assets for income. A sound retirement income strategy will help use your assets efficiently and include contingencies for risks that can cause you to spend down savings faster than anticipated. You need to ensure the money lasts.”

 

Lacking a financial plan

 

While Gen Xers could benefit from guidance from a financial professional, few do. Just 35% of Gen Xers say they currently have a financial professional, compared to 46% of millennials and 54% of boomers. White (37%) and Hispanic (35%) Gen Xers are more likely to have a financial professional than Asian/Asian American (29%) and Black/African American (24%) Gen X respondents.

 

The majority of Gen Xers say they do not have any written financial plans (58%), compared to 52% of boomers and 37% of millennials.

 

Still, Gen Xers are at least increasingly thinking about retirement. Nearly two in three (63%) say one of their top three goals in the next five years is to save enough and make plans to live a comfortable retirement.  This increased from 56% in 2023. Gen Xers who are Asian/Asian Americans (68%) were more likely to say this than white (61%), Hispanic (61%), and Black/African American Gen X respondents (55%).

 

“The guidance of a financial professional can help alleviate some of the anxiety around their financial futures,” said LaVigne. “A financial professional can help you create a financial strategy for your future and be there along the way to guide you on how to get there.”