Nearly 50 Per Cent Working Gen Xers In The US Plan To Delay Retirement To Save More: Prudential Survey
Around 67 per cent of Gen Xers in the US do not have a retirement strategy. Nearly half of all the working Gen Xers plan to delay their retirement
Around 67 per cent of Gen Xers in the US do not have a retirement strategy. Nearly half of all the working Gen Xers plan to delay their retirement
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Nearly 46 per cent, or 30 million Gen Xers (those born between 1965 and 1980) in the US do not think that they can save enough for retirement, and almost half, or 47 per cent of all the working Gen Xers expect to delay their retirement, a recent survey by Prudential Financial, Inc. showed. Moreover, 67 per cent of Gen Xers do not have a retirement strategy. And 82 per cent of Gen Xers are not even sure whether they can fully retire and plan to work part-time.
Conducted among 2,000 pre-retiree Gen X people in the US, the survey says that only 33 percent have a retirement strategy, 48 per cent people are saving but lack a strategy, whereas 19 per cent do not either save or have a strategy.
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The saving also reflects this sentiment of not having sufficient money for retirement as 35 per cent have savings of less than $10,000, and 18 per cent (12 million Gen Xers) have no savings.
Approximately 65 per cent of these people, Gen X, are planning to stay in one city or town after they retire instead of changing from one to the other locations. Only 15 per cent have plans to split time and live in different locations.
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The survey says that only 16 per cent of Gen X plan to use their home value for funding their retirement.
Rob Falzon, Vice Chair, Prudential, says in the report: “Gen X faces one of the most complex landscapes for retirement readiness in decades, including the decline of defined benefit pension plans which supported prior generations’ retirement, as well as significant uncertainty about the economy and long-term Social Security benefits.”
The data shows that only 12 per cent of the people surveyed said that ‘inheritance will be a source of retirement income’ for them and 84 per cent of the Gen Xers said that they do not have plans to leave any inheritance.
Time is changing but Gen X is witnessing situations that no previous generation has seen. Besides, as per the survey, Gen Xers neither have sufficient savings nor are following a retirement strategy.
Says Falzon, “This data underscores how important it is for Gen X to adopt a new set of retirement strategies designed to protect and grow their savings, and, when possible, translate their assets into reliable sources of future income.”
As the social security fund is provided to the people in the US, the survey says that according to the projections, ‘Social Security trust fund reserves could be depleted by 2033.’ However, Gen Xers seem to depend on this security fund as their source of income after retirement. Of the surveyed people, 58 per cent view Social Security Fund to be their retirement income source.
The uncertain conditions and inflation have enhanced difficulties and 72 per cent of Gen Xers find it hard to plan for the long term. They are struggling to plan beyond daily life. More than two-thirds of the people surveyed are worried that they would not reach their goals of saving money because of inflation.
Only 20 per cent of responders said they plan to use pensions as a source of retirement income, and 11 per cent said they will rely mostly on a pension, highlighting the steep decline in the number of pension plans in the US, the report said.
Some other threats they face are related to job security where they fear being replaced by younger people ready to work at low cost.
Dylan Tyson, president, Prudential Retirement Strategies, adds in the report that Generation X (Gen X) is exploring other approaches from previous generations for a secure retirement. A protected income planning and accumulation is required for the Gen Xers, which can help to safeguard them against market volatility, and not derail their otherwise balanced financial plans.
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