Retirement of Generation X: Baby Boomers and Millennials have lower confidence

Only 62% of Generation Xers are confident that they will “finance everything they want to do in life,” in keeping with Allianz Life Insurance Annual Pension Study 2024This is significantly lower than baby boomers (82%) and millennials (77%).

Of course, the indisputable fact that Generation X is getting closer and closer to retirement age may cause much more anxiety. The oldest members of the generation were born between the mid-Nineteen Sixties and the early Eighties, so their retirement is simply just a few years away.

“Generation X is reaching the critical stage of their retirement planning,” said Kelly LaVigne, vice chairman of consumer insights at Allianz Life, in an announcement. “For Generation X, retirement is no longer such a distant idea. This can be stressful, but by preparing now, they can develop a strategy that will help them achieve their ideal retirement.”

Meanwhile, many baby boomers are already having fun with retirement and have less to plan for, and millennials have more time to arrange.

But they still have reason to fret, because high inflation has eaten away on the regular incomes that a lot of the newborn boomers depend on. In fact, a lot of the newborn boomers aren’t retiring, largely resulting from the rising cost of living. And amongst millennials, high student loan debt and high mortgage rates have delayed necessary financial milestones of their lives. That makes Generation X’s more somber outlook especially notable.

One of the most important concerns of Generation X is a scarcity of savings. 55% of respondents said they want they’d saved more. These regretful members cited each day expenses, bank card debt and real estate debt as the most important obstacles to saving.

However, the Allianz survey also found that Generation X is lagging behind other generations in the case of taking necessary steps to arrange for retirement.

Only 35 percent of Generation X currently work with a financial skilled, in comparison with 46 percent of Millennials and 54 percent of Baby Boomers. In addition, in keeping with Allianz, 58 percent of Generation X don’t have “written financial plans,” in comparison with 52 percent of Baby Boomers and 37 percent of Millennials.

Other studies have also shown that Generation X is more anxious about retirement than Baby Boomers and Millennials. Many expect to work longer than originally planned.

The Schroders US Pension Survey 2023 also showed that Generation X staff, on average, say they need just over $1.1 million in savings to retire comfortably, but expect to have about $660,000 saved.

Another study A study by the National Institute on Retirement Security found that Generation X also has the biggest wealth gap: The top 25% have a median of $250,000, while the underside quartile has around $35,000.

Allianz, in turn, emphasized that retirement planning is about greater than just saving and reaching a specific amount.

“Once you retire, you need to use those assets as income,” LaVigne said. “A solid retirement income strategy will help you use your assets efficiently and account for contingencies for risks that could cause you to burn through your savings faster than expected. You need to make sure the money lasts.”