Generation X is looking more like millennials.
Compared with baby boomers, both groups are less likely to have saved, twice as likely to have less than a $1,000 in savings and substantially less likely to have $500,000 or more in savings. They also have similar likelihoods of having a major problem with debt.
But the picture is even bleaker for the “forgotten” generation, which is sandwich between boomers and millennials.
According to 2019 Retirement Confidence Survey (Generation X Report) by Employee Benefits Research Institute, Gen Xers are the least likely (59%) to say they are confident in having enough money to live comfortably throughout retirement. That compares to 68% of boomers and 67% of millennials.
They are the least or equal to the least likely to be confident (74%) in their ability to manage their finances in retirement, compared with 80% of boomers and 75% of millennials. And they have the lowest (or matching the lowest) levels of confidence across various measures relating to retirement.
And while the report pointed out that Gen Xers (65%) are more likely to have saved than millennials (57%), only a third of both groups (31% vs. 33%) have figured out how much money they need to save for retirement.
Twenty percent of Gen Xers have less than $1,000 in savings and investments (excluding residence and any defined benefit plans), compared with 25% of millennials. In the $500,000 plus category, Gen Xers, however, moved ahead of millennials with 13% versus five percent. Twenty-six percent of boomers have savings of $500,000 or more, the report said.
When it comes to debt, Gen Xers and millennials are closely matched. One in four indicate having a major problem with debt. And one in three do not consider debt to be problem.
The report did note that Gen Xers fall between boomers and millennials when asked if debt negatively impact their ability to save; 49% of Gen Xers agreed, compared with 58% of millennials and 37% of boomers. All three generations agreed that they might never pay off their debt.
The Gen X workers who do not consider debt to be a problem are much more likely to be confident in being able to live comfortably in retirement (83%) than those who do consider it a problem (56 percent who consider it a minor problem are confident and 26 percent who consider debt a major problem are confident), the report noted.