“Gen X has significantly less access to pensions than the boomer generation so, for most, their retirement is self-funded and self-managed,” said Rose Faye Niang, Director of Financial Planning at Edelman Financial Engines.“From a financial perspective, this means they have to figure how much to save and how to make the money last throughout their retirement all on their own.

“Navigating this alone can be extremely daunting and overwhelming. [They need to] take advantage of any resources available through [their] 401(k) or reach out to a financial planner for help. It is never too early to start saving and planning.”

Compounded by the effects of two major economic downturns – the dot-com bust of the early 2000s and the Great Recession (from 2007-2009) – Gen X has confronted more disruptions to their retirement savings efforts than almost any other generation, according to Fidelity.
 
In a new thought leadership paper, Gen X hits 60: Are your employees ready for retirement?, Fidelity examines one retirement planning tool that has shown great impact on Gen X retirement readiness: workplace managed accounts, which consider factors such as the participant's age, risk tolerance, and retirement goals in recommending a portfolio.

According to the report, only 34% of Gen Xers feel confident about retirement and, compared to their younger counterparts, many Gen Xers are struggling with appropriate investment allocation of their retirement accounts.
 
Through workplace managed accounts, retirement savers have access to a personalized retirement savings account that is professionally tailored to the participant and managed to align with their unique circumstances and goals.

Managed accounts can be valuable for periodically assessing whether the employees are on track to meet the goals set forth in their managed accounts and adjusting as needed in volatile markets.

Related: ‘Sandwiched’ Gen X is staying in the workforce longer: What does that mean for their retirement?

• Emergency savings has more than doubled from their point of enrollment, reflecting an active interest in their financial security.
• Not taking drastic action during a market downturn nearly doubled, reflecting confidence in their investing strategy.
• Confidence in their financial security has nearly doubled.

“Employers can help Gen X prepare for retirement by providing tailored education along with innovative tools and investment solutions that improve portfolio outcomes,” said Deb Boyden, Head of US Defined Contribution, Schroders. “As Gen X participants near retirement, this is an opportune time for employers to enhance their retirement plans with investment options specifically designed to safeguard retirees’ savings while also offering much-needed growth potential during retirement.”