Gen Xers are headed for retirement but many have financial regrets

Millions of Americans in their 40s and 50s are headed for retirement without being as prepared as they wish they were.

New research from Allianz Life reveals financial regrets, concerns, and priorities of Generation X with most of the cohort expressing lower confidence in their retirement finances than the millennials who have longer to prepare.

The study found that only 62% of Gen Xers feel confident about being able to financially support all the things they want to do in life, although the stats were higher for Black/African American (68%) and Asian/Asian American (67%) respondents than for White (60%) or Hispanic (58%).

By contrast, 82% of boomers and 77% of millennials said they were confident in having the money to do the things they want to do.

More than half of Gen Xers said they wish they had saved more for retirement and this group said 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,” said Kelly LaVigne, VP of Consumer Insights, Allianz Life. “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. You need to ensure the money lasts.”

Asked about their priorities to improve their long-term financial security, Gen Xers are paying off debt (64%), building up an emergency fund (58%) and making financial choices to maintain or improve their credit score (55%). 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, up from 56% in 2023.

FINANCIAL PLANNING

The concerning situation for the next generation to retire en masse is that most (58% do not have a financial plan in place, even as retirement closes in.  And only 35% are working with a financial planning professional, way below the 46% of millennials and 54% of boomers who do.

“Gen Xers are reaching crunch time for retirement planning,” Lavigne said. “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.”