The lost generation of retirees? Generation X eschewed automatic features in the early years of 401(k)s

When asked how much money is needed to retire comfortably, members of the generation say the resulting savings gap of $466,802 is larger than the deficit facing Millennials ($322,128) and Baby Boomers ($353,069). US dollars).

Millennials (ages 28 to 43) believe they need $1,171,067 to retire comfortably and expect to have saved $848,939, while non-retired baby boomers (ages 60 to 79) believe they need $1,004,742 to retire comfortably and expect to they have $651,673 available.

“If planning and saving are not made a higher priority, Generation B could use Auto Enroll, Auto Escalate and QDIAs (Qualified Deferred Investment Alternatives) for a large portion of their savings. However, even the oldest members of Generation X still have several years to become more financially prepared before reaching full retirement age.”

Auto features “play a critical role in simplifying the retirement planning process,” Boyden said. “These features remove barriers and reduce decision-making fatigue that often causes delays. For example, employees may not decide to start a retirement plan if they have to initiate the process themselves. Auto-enrollment ensures participation from the start of their career, encouraging earlier savings and greater potential for long-term growth through compounding.

“Employers can give Generation Da participants Generation

More than half of all members of the generation

Specifically, members of Generation X are the least likely to work with a financial advisor. Only 27% of Generation X respondents currently work with a financial advisor, compared to 37% of Baby Boomers and 31% of Millennials. In addition, 48% of the generation give

The lack of a plan or advice from a financial advisor may explain why 60% of the non-retired Boomer generation.

“It is never too late to seek the services of a financial advisor or seek investment solutions tailored to help retirees grow and protect their savings,” Boyden added. “There’s more than half of the generation

Despite their time horizon and lack of savings, Generation Xers hold an average of 35% of their retirement assets in cash. Why? 64% of Generation X say they are afraid of losing too much money if the stock market falls.

Good news for Generation X is that older workers will be able to put more money into their 401(k)s next year than ever before. Workers aged 60 to 63 can make a super catch-up contribution of up to $11,250, while workers aged 50 to 59 or 64 and older can make an additional catch-up contribution of up to $7,500, as in the last one year the new IRS catch-up contribution limits announced earlier this month.

“This rule presents a special opportunity for members of the generation. However, a potential risk is that some members of the generation. Given the rule, employers should emphasize the benefits of saving early – even small amounts – and the benefits of long-term investment growth.”