Gen X is scrambling to close the savings gap as they near retirement

Core Insights - Generation X is increasingly concerned about retirement savings shortfalls as they approach retirement age, with over 80% expressing worries about insufficient funds for a comfortable retirement [2][5] - On average, Gen Xers anticipate needing $1.2 million for retirement but expect to retire with only $711,771 saved, highlighting a significant gap [2] Group 1: Financial Challenges - Many Gen Xers entered the workforce during economic downturns, including the dot-com crash and the global financial crisis, which has impacted their ability to save [3] - The introduction of employer-provided 401(k) plans coincided with their entry into the job market, but limited financial education and features like auto-enrollment were lacking, leading to savings inertia [4] Group 2: Debt and Competing Priorities - High levels of credit card and student loan debt are prevalent among Gen Xers, making retirement savings one of many financial priorities [5] - Nearly 25% of Gen Xers participating in workplace retirement plans have borrowed from their accounts, primarily for emergencies, debt repayment, and rising living costs [5] Group 3: Opportunities for Improvement - Despite the challenges, many Gen X workers are currently in their peak earning years, providing an opportunity to enhance retirement savings through catch-up contributions [6][7] - A focused approach on budgeting can help identify areas to reduce spending, allowing for increased contributions to retirement savings [7]