Generation X is in far worse shape than baby boomers and millennials in terms of their retirement readiness, according to a survey released Dec. 13 by Schroders.
Gen Xers — those between the ages 43 and 58 — face an average retirement savings shortfall of $451,000, whereas baby boomers and millennials anticipate savings gaps of $291,000 and $404,000, respectively.
"The size of the retirement savings gap facing Gen X is concerning, as they are the first generation to rely on 401(k) plans instead of pensions and the next in line to retire," said Deb Boyden, head of U.S. defined contribution at Schroders, in a news release.
In addition to a bigger savings shortfall, Gen Xers are notably less confident in their ability to achieve a dream retirement, with 61% reporting fears that they will not be able to retire comfortably. Only 53% of baby boomers and 49% of millennials reported such fears, according to the survey.
The survey also draws attention to Gen Xers' conservative investing tendencies, noting that they allocate an average of 32% of their retirement assets to cash despite "their time horizon and sizable retirement savings gap."
Nearly 2 in 3 Gen Xers (63%) put their retirement savings into cash because they fear losing money, and 24% report doing so because they aren't sure how best to invest their savings.
"As the first generation to head into retirement without the safety net of a pension plan, the stakes are higher for Generation X and the margin for error is lower," Boyden said.
The survey is based on 2,000 U.S. investors ages 27 to 79. It was conducted from Feb. 13 to March 3.
