The oldest Gen Xers will qualify for Social Security retirement benefits in 2027, which means many have begun thinking more seriously about how they want to spend their retirement years.
That can be either an exciting prospect or a daunting one, depending on how much money you have saved. Unfortunately, many Gen Xers fall into the latter category because they haven’t built up a large enough nest egg.
One-quarter of Gen X investors say they’re concerned their savings won’t last more than 14 years, according to a survey of financial advisers and investors conducted by The Harris Poll on behalf of Nationwide.
The survey included more than 500 advisers and more than 2,000 investors, including 580 in the Gen X age group.
One problem for many Gen Xers is that they haven’t prioritized retirement savings. About six in 10 (61%) nonretired Gen Xers say they didn’t feel retirement was an urgent priority until age 50 or older. More than one-quarter (26%) say they won’t reach that point until age 60 or older.
Here are four things Gen Xers are doing to help boost their retirement savings, according to the Nationwide/Harris survey.
Although Gen Xers are fast approaching retirement, many have begun to entirely reconsider their timelines. Here are some findings from the Nationwide survey:
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16% of nonretired Gen Xers say they plan to retire later than initially hoped.
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26% believe that if they retired in the next 12 months, they would be forced to return to the workforce because of inadequate savings.
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12% plan to work part time in retirement.
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15% say they don’t know if they will ever be able to retire.
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More than one-third (37%) of non-retired Gen Xers say that watching their peers or family members struggle with retirement planning was a “primary trigger” for making planning a priority for themselves.
The economic landscape also plays a role. Nearly four in 10 (38%) Gen Xers say economic changes or market volatility “forced” them to prioritize retirement planning.
Inadequate retirement savings have prompted many Gen Xers to change their financial habits to help bolster their next eggs. Here’s a look at how:
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40% of Gen X investors reduced discretionary spending.
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34% increased their contributions to retirement accounts.
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19% shifted their investment strategy to reduce risk.