As Generation X approaches retirement, many of its members are realizing that they may have to work longer than originally planned.
According to new survey findings released by Natixis Investment Managers, 2 in 5 Gen Xers (41%) say that it will take a "miracle" to be able to retire securely. Nearly a quarter (22%) think they will never be able to retire.
As the oldest Gen Xers (born between 1965 and 1980) are set to turn 60 in 2025, retirement is rapidly approaching and their resiliency is being tested in a new way. The report paints a stark picture of Gen X's retirement, highlighting a disparity between their expectations and reality.
According to the report, Gen Xers want to retire at age 60 -- eight years earlier than the anticipated retirement age of Baby Boomers (who want to retire at age 68). Gen Xers anticipate a retirement period lasting only 20 years, which is shorter than many retirees actually experience.
"Underneath the numbers, the reality is that this group of investors, with a median household income of $150,000, have a median retirement savings of only $250,000 today -- hardly enough to carry them over 20 years," the report noted.
Many Gen Xers are preparing for the possibility of having to delay or make significant adjustments to their retirement plans. According to the survey, 44% accept they may have to work longer, and 30% worry that they will be forced to return to work after retirement. At the same time, 27% are worried they won't be able to work as long as they would like.
Dwindling benefits due to public debt is a also major concern. The survey shows 76% of Gen Xers are worried that increasing public debt will result in reduced retirement benefits. Another 57% believe it will be hard to make ends meet without benefits.
The survey also shows that Gen X fears healthcare costs will destroy their retirement savings: Almost a third (31%) worry that they'll go broke trying to cover healthcare costs in retirement.
Those long-range concerns are compounded by today's inflation, which 41% of survey respondents say is killing their dreams of retirement. Almost two-thirds (64%) report saving less because they are facing higher everyday costs.
While it's not surprising for investors in this "pre-retirement" phase to feel a degree of anxiety, Gen Xers have "unique challenges as they consider their retirement plans," according to Dave Goodsell, executive director of Natixis Center for Investor Insights.
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"Gen Xers are the Jan Brady of demographics. They're sandwiched between Baby Boomers and Millennials, and they've been overlooked," Goodsell said in a statement. "Now many find themselves caring for both aging parents and growing children while under pressure to fund their retirement."
The survey shows that Gen Xers are split on how much financial freedom they will have in retirement. While many (43%) anticipate having "the freedom to do what I want, when I want," almost half (48%) say they have no choice but to live frugally, and 29% worry they will have to move somewhere less expensive.
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