It may also be that generation xers are too busy with other financial priorities to worry about their retirement or engage with their finances, said Brownstein. In the survey, more than three-fifths of Generation X respondents didn’t even know their net worth.
“To me, it says that their finances are not getting prioritized,” said Brownstein. “They’re acknowledging that they need to do something, but they’re not taking any action. Their lives have gotten to the point where things are complicated, they have kids, marriages, aging parents, homes, retirement ends up very much de-prioritized.”
Generation X is also less likely than millennials to max out their employer retirement plan -- while 22 percent of millennials contribute the annual maximum to their plan, only 18 percent of generation xers were doing the same.
Many Americans expect government programs to help fill the retirement savings gap. One in four pre-retiree respondents expected Social Security to be their primary source of retirement income. While 15 percent of millennials expect to lean mostly on Social Security to meet their retirement income needs, nearly one-third of Generation Xers, 29 percent, said that they will primarily draw on Social Security.
According to the Social Security trustees 2018 annual report, the program is now drawing on its reserves to make monthly payments to participants and will run out of money by 2034. If nothing changes, younger generations can expect smaller payouts.
The average American still retires well before the full retirement age, and most future retirees plan to do the same, with 51 percent planning to retire at age 65 and younger, at least a year before the current full retirement age.
“I don’t think we do a good job as a society on educating anyone on how to live a healthy financial life,” said Brownstein. “So many people don’t even know where to start, they don’t want to make a wrong decision so they become frozen in time and don’t make any financial decisions. Finances are such a taboo topic, and the discomfort probably comes from a lack of exposure. People need more tools to engage with their finances without having to talk to anybody until they’re ready, it cuts down on the intimidation factor that seems to be a hurdle for men and women at all ages.”
The survey was conducted online among 2,008 U.S. adults between March 1 and March 7, 2018.