Why More Than Half of Gen X Are Worried They Won't Be Ready For Retirement

Core Insights - Generation X is approaching retirement but feels unprepared financially, with over half indicating insufficient savings for retirement [1] Group 1: Financial Challenges - Generation X was significantly impacted by the Great Recession starting in 2007, which hindered their ability to build a solid financial foundation [1] - Many Gen Xers are part of the "sandwich generation," balancing financial responsibilities for both aging parents and children, with 61% living in multi-generational homes [1] - Unexpected caregiving costs, including medical expenses and long-term care, are diverting resources away from retirement savings [1] Group 2: Unique Characteristics of Generation X - Unlike baby boomers, fewer Gen Xers have access to pensions, making them the first generation responsible for saving independently for retirement [1] - Generation X is likely to be the first affected by potential changes to Social Security, with funding expected to fall short beginning in 2034 [1] - The median net worth of Gen X households fell by 38% from $63,000 to $39,000 between 2007 and 2010, marking the largest percentage loss among generations [1] Group 3: Post-Recession Financial Priorities - Following the recession, 12% of Gen X reported being laid off, and a quarter experienced reduced work hours or wages, leading to a focus on debt repayment and basic living expenses rather than retirement savings [1] - Only about a quarter of Gen X indicated that saving for retirement was their greatest financial priority post-recession [1] - A well-designed financial plan is suggested to help Gen X address their unique challenges and work towards a stable retirement [1]