Seventy-five percent of Baby Boomers think they will have enough money to live comfortably in retirement, but this is true for only 35% of Gen X, according to a new report from Retirement Living, “Retirement Preparedness Study 2019: Baby Boomers vs. Generation X.”
Boomers are relying primarily on pensions and 401(k) plans, while Gen Xers are relying on 401(k)s and individual retirement accounts (IRAs). Both Boomers and Gen Xers are relying or expect to rely on Social Security for a portion of their monthly income. Seventy-three percent of Boomers rely on Social Security for 25% to 100% of their monthly income—and 85% of Gen Xers expect to do the same.
Fifty percent of Boomers and Gen Xers have saved or are on track to save $700,000 or less. Generally, Boomers think that is adequate savings, while Gen Xers do not.
The survey found 65% of Boomers saving for retirement are men and 35% are female. Among Gen X, this is evenly split at 50% for each sex.
Boomers, when asked that they would have done differently with regards to their retirement savings, say investing differently or playing the stock market better, reducing spending and living on a budget, and investing more in a Roth IRA rather than a traditional IRA.
Among the 14% of pre-retirees not saving for retirement, stagnant wages, student loan debt and the cost of living were cited as reasons.
Retirement Living’s findings are based on a survey of 562 adults. More about the study may be found here.