Gen Xers Fret About Retirement Savings Gap

Gen Xers are feeling downbeat about achieving their retirement goals, Schroders reported Wednesday.

In a survey, non-retired Americans ages 43 to 58 said that on average they will need $1,112,183 in savings to retire comfortably but expect to put away just $661,013, leaving a shortfall of $451,170.

Millennial and baby boomer respondents look forward to a smaller savings gap. Millennials believe they will need $1,280,892 to retire comfortably and expect to have saved $877,266, resulting in a gap of $403,626.

Boomers still in the workforce say it will take $924,897 in savings to retire comfortably but anticipate having saved $291,496 less than that, or $633,401.

Put another way, the survey findings showed that 61% of non-retired Gen Xers are not confident in their ability to achieve a dream retirement, compared with 53% of non-retired boomers and 49% of millennials. 

Further, 45% of non-retired Gen Xers said they have done no retirement planning, compared with 43% of millennials and 30% of non-retired boomers. 

“The size of the retirement savings gap facing Gen X is concerning, as they are the first generation to rely on 401(k) plans instead of pensions and the next in line to retire,” Deb Boyden, head of U.S. defined contribution at Schroders, said in a statement. 

“Fortunately, even the oldest Gen Xers have some time before reaching their full retirement age. Using this time to develop a retirement plan and increase their savings rate is crucial to improving their retirement readiness before it’s too late.” 

The research firm 8 Acre Perspective conducted the survey from Feb. 13 to March 3 among 2,000 U.S. investors nationwide ages 27 to 79. The median household income for working Americans surveyed was $75,000.