According to the Allianz Generations Apart Study, Boomers and Gen Xers agree there is a retirement crisis – but there are generational differences in how they’re responding.
An overwhelming number of Boomers and Gen Xers agree there is a retirement crisis (84% and 92%, respectively), and both groups reported being heavily impacted by the 2008 crash. And although both groups see themselves as being hit harder by the recession, both generations agree that it’s been much harder for Gen Xers to keep a job or plan for retirement.
Although these results may be disheartening, the good news is that both generations do believe it’s critically important for them to build their financial security in retirement (94% of Gen Xers and 95% of Boomers).
Major study findings:
An overwhelming number of Boomers and Gen Xers agree there is a retirement crisis (84% and 92%, respectively), and both groups reported being heavily impacted by the 2008 crash. And although both groups see themselves as being hit harder by the recession, both generations agree that it’s been much harder for Gen Xers to keep a job or plan for retirement.
Although these results may be disheartening, the good news is that both generations do believe it’s critically important for them to build their financial security in retirement (94% of Gen Xers and 95% of Boomers).
Major study findings:
- Romantic fantasy of the past – 82% of boomers and Generation Xers agree that a traditional retirement is a romantic fantasy of the past. More than eight in 10 (84%) from both generations said they feel that a retirement starting at age 65 spent “doing exactly what you want” is now unrealistic.
- Disadvantaged Gen Xers – Gen X respondents were much more hopeless about their ability to achieve retirement goals and about their overall financial situation than were their boomer counterparts. Although each generation feels their circumstances have been tougher to manage, Gen X respondents indicated stronger feelings about the extent to which they feel burdened and disadvantaged by their reality. More than two thirds (67%) of Gen Xers agreed with the idea that supposed targets for how much you need to retire are way out of reach versus less than half of boomers (49%).
- Warped reality – Despite clear concerns about their financial situations and prospect for a comfortable retirement, both generations are surprisingly relaxed about planning for their financial futures. An astounding percentage of boomers (65%) and Gen Xers (53%) said they "just have this feeling that everything’s going to work out."
Significantly more Gen X respondents also admitted to getting "bogged down with uncertainty when planning for retirement" (64% versus 43% of Boomers), believing it is "useless to plan for retirement when everything is so uncertain" (44% versus 31% of Boomers), and feeling that they will "never have enough money to stop working" (68% versus 43% of Boomers).
"It’s been widely reported that baby boomers are worried about their retirement, but the financial planning and retirement concerns of Generation X have gotten less attention," said Katie Libbe, Allianz Life vice president of Consumer Insights. "While our study confirms that many boomers still lack confidence about their future, it reveals alarming realities about the significant angst and pessimism Gen X feels regarding the current and future state of their finances. They’re the next generation that’s quickly approaching retirement and their hands–off approach to planning and preparation is alarming."
Gen X: The Disadvantaged Generation
Each generation in the study generally feels their circumstances have been tougher to manage. For example, both Gen Xers and Boomers think that their generation is burdened with more expenses (90% and 80% agreement, respectively), more uncertainty (86% and 72%) and more risk (78% and 64%) than their counterparts.
Each generation in the study generally feels their circumstances have been tougher to manage. For example, both Gen Xers and Boomers think that their generation is burdened with more expenses (90% and 80% agreement, respectively), more uncertainty (86% and 72%) and more risk (78% and 64%) than their counterparts.
However, when it comes to jobs, money, and retirement, even baby Boomers agreed that Generation X has it much tougher in the following areas:
- Planning for retirement – 86% of Gen Xers and 65% of boomers agreed Gen X has it tougher
- Saving money – 89% of Gen Xers and 68% of boomers agreed it was hard for both
- Keeping a job – 85% of Gen Xers and 69% of boomers agreed
- Staying out of debt – 90% of Gen Xers and 72% of boomers agreed
- Getting a job – 85% of Gen Xers and 73% of boomers agreed
Study methodology
The Allianz Generations Apart Study, fielded by Larson Research and Strategy Consulting, was a nationwide online quantitative survey of 2,000 U.S. adults ages 35–67 with a minimum household income of $30,000. The sample was designed to achieve a 50/50 balance of men and women, and a 50/50 balance of boomers and Generation Xers. The margin of error is +/- 3%. For more information go here
The Allianz Generations Apart Study, fielded by Larson Research and Strategy Consulting, was a nationwide online quantitative survey of 2,000 U.S. adults ages 35–67 with a minimum household income of $30,000. The sample was designed to achieve a 50/50 balance of men and women, and a 50/50 balance of boomers and Generation Xers. The margin of error is +/- 3%. For more information go here
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