Most Gen Xers doubt their retirement readiness

"Many Gen X'ers are juggling responsibilities on both ends, supporting aging parents while still helping their children, said Jeff Sippel, chief strategy officer at Northwestern Mutual. So, they're feeling the pressure of being part of the sandwich generation. They're also the first generation to truly feel the impact of the move from defined benefit plans to defined contribution plans. All of this puts more of the burden of financial planning on their shoulders."

"The study also found that Gen Xers expect they'll need $1.57 million to retire comfortably, which is a hefty $310,000 above the national magic number average. And their financial worries weigh heavily as 35% of Gen Xers say these concerns keep them up at night at least once a month, versus only 14% of baby boomers. Among those who have set aside money for retirement, the most common response (17%) was that they've saved about twice their current annual income."

"More than half (56%) of Gen Xers believe they will outlive their savings, compared with 40% of boomers, according to the research. The study also noted that Gen Xers are the least likely of any generation to expect to leave an inheritance. The nature of support is changing, Sippel said. Parents are living longer and that's compelling Gen X to provide more extended financial assistance than Boomers did with their parents."

Gen Xers expect they will need $1.57 million to retire comfortably, about $310,000 above the national benchmark. Thirty-five percent report financial worries disrupt sleep at least monthly, compared with 14% of baby boomers. Among those saving for retirement, the most common amount saved is about twice current annual income. Many Gen Xers support both aging parents and children, increasing financial pressure and shifting responsibility due to the move from defined benefit to defined contribution plans. Fifty-six percent believe they will outlive their savings, and Gen Xers are least likely to expect to leave an inheritance. Clarity on inflation, taxes, and long-term care planning is lower for Gen X.

Read at www.housingwire.com