Is Gen X Prepared for Retirement? 4 Reasons Many Feel Unprepared

If you’re a member of Gen X, you may wonder how your retirement readiness level compares with other workers your age. According to a study by Northwestern Mutual, slightly more than half (52%) of Gen Xers have three times their current annual income or less saved. Almost the same percentage (54%) believe they won’t be financially prepared for retirement when the time comes.

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GOBankingRates talked to some financial experts to find out why many Gen Xers may not feel prepared for retirement.

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Unique Money Situations

According to Annie Cole, Ed.D., money coach and founder of Money Essentials for Women, unlike baby boomers and other older generations, Gen X and younger generations are facing unique financial challenges that are trickling over into their retirement plans.

“First, Gen Xers are more often caring for longer-living parents and children at the same time, which means more of a financial burden than older generations,” Cole said.

Chad Willardson, founder and president of Pacific Capital and city treasurer of Corona, California, said Gen Xers face unique headwinds. “Those include healthcare costs rising faster than wages, longer life expectancies and management of aging parents,” Willardson noted.

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Economic Crash Effects

Sometimes a significant world event can cause trouble for individuals and their money situations.

“Many Gen Xers finished college and started working around the 2008 economic crash, which impacted their early earning years and ability to land consistent employment,” Cole said.

Increased Housing Costs

The housing market troubles have impacted the retirement plans for plenty of workers of different ages as well.

“This generation has experienced dramatic rises in housing costs compared to salary increases, making homeownership out of reach for many,” Cole said.

Work Burnout

“Combine these factors with high burnout rates at work, and you’ve got a generation of financially strained, highly-stressed individuals who may think that retirement is not even possible for them,” Cole said. “Given this situation, it’s not surprising that many people are turning to freelance work or micro-retirements to try to find an alternative to the traditional career-to-retirement path.”

“As a GenXer, I can empathize with how stressed my peers feel. Gen Xers, like Generation Jones, are more likely to experience the decline of traditional pensions and the rise of 401(k) plans, thereby assuming more responsibility for their retirement,” said Marguerita Cheng, CFP, CEO of Blue Ocean Global Wealth.

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This article originally appeared on GOBankingRates.com: Is Gen X Prepared for Retirement? 4 Reasons Many Feel Unprepared