George Kamel, a financial expert at Ramsey Solutions, has become heavier for Americans working at past retirement ages and has been offering advice to investors.
A recently released study from Fidelity Investments shows that as Generation X continues to approach retirement, fewer people are viewed as they are rosy about their prospects for retirement.
Fidelity investment found in Latest version Of the annual “retirement planning status” study, where 45% of Gen Xers (between 44 and 59) felt “not confident” in their ability to retire when they wanted.
Meanwhile, 53% were sure they could do so.
People put money in a jar of retirement savings. (istock / istock)
“Gen X is most likely what we call the sandwich generation right now,” says Vice President of Fidelity Investments Rita Asaf. He told Fox Business. “They are not only caring for both their children and their aging parents, but they are also preparing for retirement. It's pretty expensive.”
“They are also at a time when the cost of living is high, so if they're helping their kids, they probably have kids at college or just graduated from college and the costs of them are much higher,” she continued. “Their daily costs are much higher, and they also know the elderly parents, their associated health care and long-term care costs.”
Assaf said Gen X is poised to become the first “401(k) generation.”
“While current retirees still use pensions as the primary way to fund their retirement savings, I think Gen X has found that 61% will utilize 401(k) and IRAs, as well as individual savings vehicles for retirement.
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Compared to last year's survey, Gen X's confidence in retiring from “when and how you want” dropped 16% points.
She said the survey “really highlighted the fact that there is a bit of a general concern that when the cost of living increases, 'm going to continue my retirement savings'.”
According to Fidelity Investments, Gen X “holds a prominent, particularly the most negative outlook for retirement” among the four generations included in the study.
In this survey, Gen Z and Millennials felt most confident in resigning “on their own terms” at 75% and 71% respectively. Meanwhile, 68% of the baby boomer generation reported being confident.
For Gen X, it is impacted by the juggling of children, older parents, and higher costs of living. Asaf also said, “Anxiety tends to rise as you get closer.”
According to Assaf, younger generations like Gen Z and Millennials “we're actually more confident because they still have a long distance” and “we have more time to save more time, invest and reap the benefits of combined income.”
Overall, 67% of those in their retirement planning years were proactive about retiring from “when and how they want.”
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The study was based on a study that included more than 2,000 “adult financial decision makers” with at least one investment account.
Research shows that taking away enough money, inflation, inflation, living expenses, saving money for retirement, saving for retirement, and knowing how much money is needed for retirement, are among the issues that respondents have identified as the person they are poseating the most challenges.
Close-up of elderly hands calculating bills at home (istock / istock)
Meanwhile, among current retirees, 72% of the golden age are “going according to plan,” a study reported. A similar share (70%) also felt that the retirement plan was well established.
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Regarding retirement income, 77% of retirees pointed to Social Security as the best source of information. Behind this was a pension of 48% and a personal savings of 41%.
Retired couple walking their arms on the beach. (Annette Riedl / Picture Alliance by Getty Images / Getty Images)
“The plan doesn't stop when you retire,” Assaf told Fox Business. “Even if you're retired, you have to continue to evolve your plans.”
The survey said seven savings for 10 retirees were hit by rising costs of living.
Transamerica Center for Retirement Studies reported in August 2024 that the median retirement age for middle-class retirees was 62 years old.
A study released last year by Northwestern Mutual found that Americans think it's the amount they need to experience a comfortable retirement.
