Reality Bites for Gen Xers doing retirement math: just 49% say they’re on track, the worst of any generation

As the title of the 1995 movie Reality Bites came to mind, a new report released by Goldman Sachs Asset Management revealed that a majority of Generation X workers do not feel financially prepared for retirement. Only 49% of Gen X savers surveyed said they were on track or ahead for retirement, the lowest confidence among the four generations studied.

This survey of 5,106 people, conducted in July, underscores a generation that is working more but feeling less secure about their financial future. Only 57% of Gen X respondents describe their primary job as financially stable, the lowest among the generations. Combined with the high rate of having taken on additional work outside their main job, 72% of Gen Xers said they needed that income to make ends meet.

While Gen Xers are in the prime of their career and earning years, they are the least likely to report their job provides long-term financial security. The median age for Gen Xers is now in their early 60s, and the survey found that 65% have delayed major financial goals. The pressure is mounting on the grocery store shelves, as housing was the top saving obstacle for Gen X (37%), compared to housing for Gen Z (38%) and millennials (36%).

Gen Xers also reported having to put off other financial goals and cited everyday expenses as the primary hindrance to saving.

In response, many Gen Xers are cutting back on their retirement savings, with the share of workers increasing their savings falling to 39%, a decline of over 16 points. Conversely, 14% of respondents said they cut their savings, up from 8% last year. The survey suggests that Gen Xers are more defensive in their approach to saving, possibly due to concerns about persistent inflation and market volatility.

The outlook is further clouded by the fact that some 53% of Gen Xers said financial concerns make it hard for them to focus at work, and 27% have missed work in the past year due to financial challenges. More than a third (32%) are likely to look for a new job in the next 12 months to improve their finances.

While having a personalized retirement plan is a bright spot, with 72% of savers with a plan feeling on track versus just 33% without, it remains a challenge for a generation that, despite being the last to experience the promise of a 401(k) retirement, is now grappling with feelings of insecurity and uncertainty.