Generation X Are Unprepared Financially for Retirement, According to a New Study

A new study reveals a bleak financial outlook for Generation X, the “forgotten generation” comprising about 64 million Americans born between 1965 and 1980. The National Institute on Retirement Security warns that Generation X is unprepared for retirement, primarily due to the shift from pension plans to 401(k)-style accounts. The study shows that the bottom half of earners in this generation have only saved a few thousand dollars for retirement, while the typical household has a mere $40,000 in retirement savings. Shockingly, approximately 40% of Generation X has not saved anything for retirement at all. Even those participating in employer-sponsored retirement plans are falling short of savings targets, regardless of their race, gender, marital status, or income. The absence of pension plans, multiple economic crises, stagnant wages, and rising costs have created a challenging situation for Generation X, turning the American Dream of retirement into a potential nightmare for many. A separate study previously labeled Generation X as the “Broke Generation,” with 64% of respondents citing affordability issues as the reason for not being able to save for retirement.