More than half of Generation X don’t think they’ll be ready for retirement and here’s why

Generation X is rapidly approaching retirement, and the majority don’t feel ready.

The oldest members of Generation However, a new report from Northwestern Mutual found that more than half of Generation X members don’t feel they have enough money saved for retirement.

While many generations may not feel prepared when approaching retirement, Generation X faces some unique financial challenges that prevent them from feeling like they are saving enough.

This “sandwich generation” has a lot of money on its plate

They are moving into the “sandwich generation” as many reach the age where they are caring for their elderly parents and children. A survey by homebuilder Lombardo Homes found that 61% of Generation X live in multi-generational homes.

Between their children’s college educations and their parents’ health care costs, saving for retirement has fallen through the cracks for many.

“As parents live longer, Generation “These unexpected expenses can deplete their savings and divert resources away from retirement planning.”

What’s more, adult children of Generation

Other generations have been put in a similar situation before. However, the Generation X situation is a bit unique.

What makes Generation X different?

Unlike many baby boomers who have benefited from annuities, fewer members of Generation

Generation X is also likely to be the first generation to be affected by potential changes to Social Security. Funding for the program is expected to decline beginning in 2034, and even if Congress moves to cover the gap, the resulting changes in benefits could affect Generation X first.

In addition to all of these factors, Generation X is also unique because, as a whole, they did not have a solid financial foundation before reaching the “trapped” age.

Generation X has felt the effects of the economic downturn on a deeper level than previous generations. While many members of this generation were starting a family, buying their first home, or settling into their careers, a curve ball was thrown their way: the Great Recession.

While Millennials were graduating from college and entering the workforce for the first time as the recession hit in 2007 and lasted into 2009, members of Generation X were trying to achieve the next set of milestones, and those milestones aren’t cheap.

“No generation lost a greater proportion of their net worth between 2007 and 2010 than Generation X households.” [with] Their average net worth fell 38%, from $63,000 to $39,000, said Chase Horton, a senior analyst at Cerulli Associates.

As a result of the recession, 12% of Generation

After the recession, many Gen X workers focused on paying off debt, covering basic living expenses, or just getting by. Only about a quarter said saving for retirement was their top financial priority at the time.

More than a decade later, Generation X still feels left behind, and like other financial needs take precedence over their future.

“This is where having a comprehensive, well-designed financial plan can help,” Faircloth said. “Although retirement may seem daunting for Generation X, especially with the pressures of being in the sandwich generation, addressing these unique challenges head-on can provide Generation