As Generation X knows all too well, “reality bites,” to quote the iconic 1994 film of the same name.
Most Gen Xers — roughly defined as those born between 1965 and 1980 — are failing to meet retirement savings targets. The typical Gen X household has just $40,000 in retirement savings in private accounts, according to the National Institute on Retirement Security.
“When we think about retirement preparation, we worry about the large numbers of people who are not on track,” Dan Doonan, executive director of the National Institute on Retirement Security, said Thursday at CNBC’s Financial Advisor Summit.
Across the board, many Americans worry about their financial well-being and retirement plans. Over half of working adults feel behind on their retirement savings, according to a recent Bankrate study.
But when broken down by generation, Gen Xers are most likely to feel this way, followed by baby boomers then millennials and then Gen Zers, Bankrate found. Gen X workers are also most likely to say they are contributing less to their retirement savings this year compared to last year.
More than half of Gen X workers, or roughly 57%, think it is not likely they will save enough to retire comfortably, according to Bankrate.
At the same time, the average 401(k) balance among Gen Xers is $153,300, up nearly 15% from a year ago, according to the latest data from Fidelity Investments, the nation’s largest provider of 401(k) plans.
Gen X savers have benefited significantly from improved defined contribution plans, including newer plan features such as auto enrollment and auto escalation.