Among women of different generations, it’s those in Gen X who believe they’ll need the most retire, but who are also unfortunately suffering the biggest shortfall, according to a new Northwestern Mutual report released Wednesday.
Gen X women, those who range in age from 44 to 59 years old, believe they’ll need $2.1 million to retire comfortably, but have less than $100,000 saved, according to Northwestern Mutual’s 2024 “Planning & Progress Study.” The company surveyed 4,588 Americans for the report.
The retirement savings goal of Gen X women is far larger than it is for any other female group. Boomer women set their goal much lower, on average, at $902,000 (a seven-figure difference), while millennial women believe they’ll need $1.5 million to retire comfortably and Gen Z women put the figure at $1.2 million.
Yet Gen X women face the biggest gap between what they think they’ll need and what they’ve actually got socked away, falling behind by $2 million. Boomer women face a gap of only $801,000. For millennial women, the shortfall is $1.4 million, and for Gen Z it’s $1.2 million.
Given those numbers, it’s not surprising Gen X women report higher financial anxiety about their retirement preparedness. With just $95,000 actually stored away for retirement, many of them (42%) described themselves as financially insecure. Adding insult to injury, some 10% report being currently unemployed or unable to work because of an injury or an illness. That could make their retirement goals even tougher to reach.
“It can be especially stressful to see retirement out on the horizon and not feel prepared,” said Kamilah Williams-Kemp, chief product officer at Northwestern Mutual, in a statement.
“Now is the time for Gen X women to convert their anxiety into confidence with a plan,” she said, “specifically, a comprehensive financial plan created with an advisor who gets you. Their experience should also be a wake-up call for younger women that building a great plan now can help make the most of the time to save and reduce the worry down the road.”
Only one-third of the women in the survey (36%) said they knew how much money they would need to retire comfortably, while 52% men did. Boomer women were the most confident; 40% said they had figured out the magic number for retirement success. The other female cohorts were trailing: Only 35% of Gen X women said they knew the magic retirement number, while only 34% of millennial women did and only 29% of Gen Y.
Nearly one-quarter of all women said they had less than the amount of their current annual salary saved for retirement.
Where are women getting their advice? Some 30% are getting it from financial advisors. Thirty-seven percent of boomer women said they did, but that declined to 31% for Gen X women, 23% for millennial women and 24% for Gen Y women.
Younger women are more inclined to put their trust in family members and spouses first when it comes to getting financial advice. Gen Z trusts family members the most for retirement advice—34% of them cited family as a resource, whereas only 12% of boomer women did.
Twenty-six percent of women have not received advice from anyone, and that number rose to 32% among boomer women, Northwestern Mutual found.
“My message to women is they are not alone in figuring out their long-term financial plans,” Williams-Kemp said. “Regardless of your age, circumstances or expertise, find a professional financial advisor who you trust and put a solid plan in place. Those two steps can make a world of difference toward achieving greater certainty in the near term and financial security down the road.”