Gen X, the so-called forgotten generation, is entering its retirement years. A new study from Nationwide Retirement Institute, the Advisor Authority report, says six in 10 Gen Xers do not feel retirement is an urgent priority—and a quarter expect they won’t feel this way until about age 60.
This has Gen X behind in its plans to save for retirement. After realizing retirement was nearing, 40% of Gen X investors cut discretionary spending, 34% increased their contributions to retirement accounts, 23% sought out professional financial advice and 19% shifted their investment strategy to reduce risk.
“For Gen Xers, the clock is ticking. Retirement is no longer a distant milestone, but an event that’s right around the corner,” says Suzanne Ricklin, vice president of Nationwide Retention and Sales. This generation has focused on juggling college costs for their children, caring for aging parents and managing economic volatility but “retirement planning can no longer wait,” she says.
“Every year of delay means fewer options and greater risk they will miss out on a secure retirement,” Ricklin says. “Making retirement a priority now by connecting with a financial advisor who can help pinpoint the right solutions for Gen Xers’ needs is essential for this generation.”
See also: How four generations of workers are faring in retirement savings
Cost of living and broader macroeconomic pressures are also impacting Gen Xers’ retirement plans. Despite being very close to reaching retirement, many are reconsidering their timelines. In fact, 16% of non-retired Gen Xers say they are planning to retire later than initially hoped. About 12% say they plan to work part-time in retirement, and 15% say they don’t know if they’ll ever be able to retire.
A quarter (26%) of non-retired Gen Xers believe they would be forced to return to the workforce at some point due to inadequate savings if they retired in the next 12 months. More than four in 10 (43%) say they’d continue working in some capacity to supplement income out of necessity.
Gen Xers are learning from their family members’ retirement experiences—and it’s changing how they approach their own planning. In fact, more than a third (37%) of non-retired Gen Xers say observing family members struggle with retirement planning was a primary trigger for making retirement planning a priority for themselves.
Finally, the current economic landscape is driving retirement planning to the top of the list of priorities for Gen Xers, as 38% say economic changes or market volatility forced them to prioritize retirement planning.
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