Gen X Retirement at Risk, Social Security Cuts Explained: As baby boomers leave the workforce, Gen X is facing an increasing retirement issue, and studies caution that this generation is ill-prepared. Their vulnerability is exacerbated by extended lifespans, declining pensions, and caring responsibilities. Gen X is increasingly looking for protected lifelong income options because Social Security may be reduced by the time they retire.
The impact that millions of baby boomers’ retirement from the job may put on retirement systems has received a lot of attention. However, recent studies indicate that the larger issue might still exist and could disproportionately affect Generation X.
As Baby Boomers Retire, Gen X Faces Increasing Retirement Concerns
A recent data-driven analysis published by GOBankingRates claims that Gen X is experiencing an increasing retirement dilemma at the same time that worries about possible Social Security cuts are growing. Researchers claim that Gen X may be significantly less prepared when their turn comes, despite the fact that boomers continue to dominate retirement news.
The largest wave of Americans turning 65 in history, known as the “Peak 65 Zone,” is expected to peak in 2025, according to a report from the Retirement Income Institute of the Alliance for Lifetime Income. However, the research cautions that Gen X would have fewer protections when they retire.
Why Scientists Caution That Gen Xers Are More Susceptible Than Baby Boomers
According to the research, “Gen X faces an even greater retirement crisis, while baby boomers dominate headlines.” According to GOBankingRates, “Gen X risks becoming the most financially vulnerable cohort to reach retirement due to shrinking pensions, rising longevity, and heavy caregiving burdens for parents and other family members.”
Gen X Workers Have Low Retirement Confidence
Confidence levels are already reflecting that strain. Only 41% of Gen Xers believe their money will survive through retirement, compared to 62% of baby boomers, according to Cyrus Bamji, chief strategy and communications officer for the Alliance for Lifetime Income by LIMRA. Retirement plans are also being delayed by financial concerns; 37% of Gen X workers, nearly twice as many as boomers, said they anticipate retiring later due to financial problems.
Red Flags Are Raised By Gen X Retirement Savings Gaps
Another warning sign is a lack of savings. According to a Bankrate retirement survey, 69% of Gen X employees claim to be behind on their retirement funds. More people than any other generation—nearly half, or 47%—report being seriously behind.
Cuts To Social Security Could Affect Generation X When They Reach Retirement Age
As Gen X approaches retirement age, Social Security, which is frequently viewed as a vital safety net, might provide less assistance. According to GOBankingRates, Bamji emphasized that the oldest Gen Xers will turn 65 in 2030, just three years before the Social Security trust fund is expected to run out.
According to Bamji, who was cited by GOBankingRates, “Gen Xers said they’re considerably more interested in the lifetime income protection that annuities provide compared to boomers to fill the protection gap that Social Security leaves.”
Stronger Protections For Retirement Income Are Being Called For More
Gen Xers must already be searching for alternatives in light of that risk. According to the GOBankingRates report, Bamji pointed out that the report emphasizes the critical need for increased access to protected lifetime income options and policies that bolster retirement security. This will guarantee that Gen Xers don’t enter retirement at a disadvantage in comparison to previous generations.