A new study released by the Nationwide Retirement Institute reveals that for many Gen Xers retirement has arrived faster than expected.
The big picture: Despite being close to their retirement years, a majority of this cohort says the reality of leaving the workforce practically “snuck up” on them.
In fact, six in ten (61 percent) non-retired Gen Xers admit they didn’t view retirement as an urgent priority until they hit age 50 or later. And for about a quarter (26 percent), that sense of urgency won’t surface until age 60 or beyond.
By the numbers: This late awakening has triggered a ripple effect.
- Many Gen Xers now feel they’re behind on planning and are scrambling to make up ground.
- Once the nearness of retirement set in, 40 percent cut discretionary spending, 34 percent boosted contributions to their retirement accounts, 23 percent turned to professional financial advice, and 19 percent shifted to lower-risk investment strategies.
But even with these efforts, confidence remains shaky.
- A quarter (25 percent) of Gen X investors worry their savings won’t last more than 14 years into retirement, and more than one in ten (12 percent) say their nest egg is shrinking.
- Financial advisors share those concerns, with 39 percent citing inadequate retirement income as one of the biggest barriers to Gen X retirement readiness.
