Often called “America’s forgotten middle child,” Generation Unfortunately, the results don’t look too rosy.
As the first generation to rely primarily on 401(k) plans instead of traditional pensions, Gen Xers have had a front-row seat to the shift toward self-directed retirement savings. However, according to a Goldman Sachs Retirement Survey, nearly half of this group admitted that their retirement savings weren’t on track, so the experiment didn’t go smoothly.
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According to the study, approximately 45% of Gen Xers are falling short of their retirement savings goals. And now that the oldest of this generation will turn 60 next year, time is running out to catch up.
Gen Xers were the first to experience the widespread shift from employer-sponsored pensions to self-directed 401(k) plans. As employers began withdrawing from the expensive retirement system, Gen
A report from the Spokane Journal of Business summed it up perfectly: the retirement outlook for Generation X is “bleak.” While younger generations have had more time to adapt to the 401(k) system, many Gen Xers have started saving later. Combine that with market fluctuations and the responsibility of managing their retirement savings and it’s no wonder that nearly half of this group is behind schedule.
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Chris Ceder, a senior retirement strategist at Goldman Sachs Asset Management, pointed out to Yahoo Finance that many in this generation “got a late start” on their 401(k) savings, which only compounds the problem. Without the safety net of a pension, they have had to take on the responsibility of saving and investing wisely, but for many it has not been easy.
According to Fidelity Investments, the average 401(k) balance for Gen X is about $178,500. While that seems like a hefty sum, it’s far from the $1.5 million that financial experts say is needed to retire comfortably today. And for Gen
