For two-fifths of Gen X, retiring securely will take a “miracle”

Photographer: Ron Antonelli/Bloomberg

Survey finds North American Gen Xers feel alone on their path to retirement readiness amid worries of public debt, healthcare costs, and inflation.

A new survey by Natixis Investment Managers reveals a concerning outlook for North American Generation X as they approach retirement.

Nearly half (41 percent) of the respondents believe it would take a “miracle” for them to retire securely, with almost a quarter (22 percent) expecting that they won’t retire at all.

While Gen Xers aim to retire at age 60, eight years earlier than Baby Boomers who plan to retire at 68, their median retirement savings of $250,000 is far from sufficient to support a retirement that could overshoot their anticipated 20-year timeline. Despite a median household income of $150,000, many Gen Xers feel financially unprepared for retirement.

“Gen Xers are the Jan Brady of demographics. They’re sandwiched between Baby Boomers and Millennials, and they’ve been overlooked,” Dave Goodsell, executive director of Natixis Center for Investor Insights, said in a statement. “Now many find themselves caring for both aging parents and growing children while under pressure to fund their retirement.”

According to Natixis’ Gen X report, four-fifths (78 percent) believe retirement funding is increasingly their own responsibility, rather than relying on public or private pensions. With 76 percent concerned that ballooning public debt will squeeze retirement benefits, another 57 percent fear it will be difficult to make ends meet without these benefits.

Health care costs are another major concern, with 31 percent worried about going broke trying to cover these expenses in retirement. Consequently, 44 percent of respondents anticipate having to work longer, while 30 percent fear they may need to return to work post-retirement. Still, 27 percent are concerned they may not be able to work as long as they would like due to health or other issues.

Inflation is a significant source of anxiety, with 85 percent of Gen Xers underscoring the impact it has on retirement security and nearly two-thirds (64 percent) reportedly saving less due to rising everyday costs.

While 46 percent said they’re comfortable taking investment risks to get ahead, a substantial 78 percent also prioritized safety over performance. Only 4 percent see having too much in cash as a risk, even as cash investments offer low rates of returns and aren’t immune to inflation.

The survey also indicates a lower inclination among North American Gen Xers to seek professional financial advice, with only 38 percent acknowledging the need for it, compared to 56 percent globally. Even so, 64 percent recognize the importance of professional guidance in managing inflation.

North American Gen Xers also bucked global trends favoring digital advice, with 79 percent of North preferring in-person consultations with advisors, according to Natixis.

“Amid the complexities of retirement planning, Gen Xers are at a critical juncture, grappling with concerns over the impact of high costs, market volatility, and dwindling benefits,” said Liana Magner, executive vice president and head of retirement and institutional in the US for Natixis Investment Managers.

“As they seek solutions to address these anxieties, it will be increasingly important for them to utilize resources, including financial advisors, to deploy strategies that help them navigate retirement,” she said.