The Generation X population saw a significant decline in retirement confidence and savings due to the ongoing effects of the Great Recession and lacking labor market, a new study claims.
If you were born between 1962 and 1981, odds are retirement preparedness is at the forefront of your concerns. However, new data from the Insured Retirement Institute show that retirement savings dropped for GenXers by 15 percentage points since 2012.
Also, the percentage of this population that lack confidence in having sufficient savings to live comfortably in retirement jumped by 22 percentage points to 42%.
Today, the median retirement savings for this group is $59,800. In 2012, the median savings amount was $70,400.
IRI President and CEO Cathy Weatherford says that it appears the lasting effects of the recession and prolonged labor market woes are taking a hit to GenXers confidence and their savings. IRIs findings note that 36% of the group reported having trouble paying their rent or mortgage.
Additionally, the Washington, D.C.-based association finds that 21% of GenXers stopped contributing to a retirement plan and 14% withdrew their retirement assets prematurely.
Fortunately, with most GenXers still at least two decades from retirement age, theres time to steer them back on track toward retirement security, she adds.
The IRI says that increased financial and investing education could help. Currently, 30% of GenXers rate themselves as being highly knowledgeable when it comes to financial matters, but only 11% are confident when it comes to investing. However, IRIs research states that 77% of the cohort are not seeking advice from a financial planner.
Additional highlights include 65% of GenXers who say they have money saved for retirement and 42%who have retirement savings less than $50,000.
