Americans between the ages of 45 and 60 (also known as Generation X) are staring down a significant retirement challenge, as just 16% believe they have saved enough money, according to the “Schroders 2025 US Retirement Survey.”
On average, Gen Xers expect to retire with $711,771 saved — far short of the $1,116,747 they believe is necessary for a comfortable retirement. That’s a $404,976 savings gap, which is the largest among all generations surveyed. The savings gap facing baby boomers (ages 61-80), for example, totals $356,684, as non-retired members of this generation expect to have $603,367 saved upon leaving the workforce and believe they need $960,051 to retire comfortably. The shortfall for millennials (ages 29-44) is the smallest but still sizeable; this generation expects to retire with $785,200 saved, which is $353,721 short of the $1,138,921 they think they’ll need.
“While many baby boomers have defined benefit pension plans that provide a set income for life, Gen Xers entered the workforce as pensions were being replaced by defined contribution plans and before key features like auto-enroll and auto-escalate became common,” Deb Boyden, head of US Defined Contribution for Schroders, said. ”The oldest Gen Xers are roughly 10 years from full retirement age, and that provides a window for them to cut this savings gap and explore solutions that can improve their transition from asset accumulation to asset decumulation.”
The Schroders 2025 US Retirement Survey was conducted among 1,500 U.S. investors nationwide between the ages of 29 and 79 — including 602 currently participating in a workplace retirement plan..
More bad news about Generation X
Gen Xers are the least likely to have spent time estimating their expenses in retirement and determining how much income they will need to generate, according to the report. More than half (53%) report they have not done any retirement planning, compared to 49% of millennials and 43% of baby boomers. And just 26% of Generation X report even working with a financial advisor.
With the majority of the generation approaching retirement without a plan or advisor, it’s perhaps not surprising that 53% of Gen Xers are concerned about outliving their assets, and 61% are not confident they will be able to achieve their dream retirement.
“Approaching retirement without a plan or professional advice is a huge mistake,” Boyden said. “Given the number of unknown factors involved, retirement can seem impossible to plan for, but there’s no question that those who take the time to determine how much income they’ll need to cover their expenses, then create an investment strategy to meet these needs, will be far closer to achieving their dream retirement.”
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