However, the Generation X families associated with disadvantaged groups were the driving force for the lower overall financial indicator results, an Employee Benefits Research Institute (EBRI) issue brief says.
Tag: Generation X
A study shows Americans at least 45 years old who have not yet retired are struggling financially and falling behind in retirement savings, but defined contribution (DC) plan sponsors can help.
Because people are living longer, healthier lives, the Wells Fargo Investment Institute has suggested different ways that Millennials, Generation X and Baby Boomers can successfully save for retirement.
However, among all age groups, the most frequently cited retirement fear is outliving savings.
Defined contribution (DC) retirement plan eligibility and auto portability can have a large impact on reducing retirement savings shortfalls, the Employee Benefit Research Institute (EBRI) found.
Both groups have saved or are on track to save $700,000 or less; however, Boomers think that is adequate savings, while Gen Xers do not.
By comparison, the majority of mutual fund investing for Baby Boomers is outside of an employer-sponsored retirement plan, Investment Company Institute data shows.
They also value financial planning more than a bonus.
More than one-quarter of Millennials have more than $100,000 in retirement savings, with an average of 30 to 35 years before retirement, compared to 75% of Boomers with more than $100,000 in savings and an average of only three years before retirement.
The top three retirement risks Gen Xers are most concerned about are changes to Social Security, high health care costs and running out of money.
The majority of Gen Xers surveyed by T. Rowe Price reported they receive advice through their employer.
However, researchers say their outcome could possibly improve, given the fact that they still have a long time horizon to save, the markets could deliver strong returns and the government could save Social Security.
Baby Boomers are adopting better financial habits, but Millennials may be overconfident in theirs, a study by Allianz finds.