Gen Xers fell far behind on savings goals and need a bank intervention

The news: Generation X is the first group of US consumers facing retirement with less financial security than their parents and grandparents, per Fortune. 

Many have also done little to no retirement planning, demanding an intervention from their financial institutions (FIs).

How we got here: Gen X broadly lacks the safety net of corporate pension plans their predecessors enjoyed, and almost half believe they can’t rely on Social Security to be there when they retire.

  • This generation’s median retirement savings account balance was $10,000, and 40% have no retirement savings at all, per a National Institute on Retirement Security report.
  • As a result, 61% believe they won’t be able to achieve their dream retirements, compared with less than half of millennials and 53% of baby boomers who haven’t already retired.
  • And while Gen Xers expect to benefit from the wealth transfer, their debts and expenses may mean they net very little from inheritance, per NBC.

What do they need? Gen X is the most financially insecure generation: 50.2% identify as not having enough money, per MarketWatch. And their younger counterparts are able to stash away around 33% more money each month. 

  • However, they’re half as likely to seek financial advice from their banks as older generations. And they’re less likely to speak with family and friends about money than Gen Zers. 
  • That means many navigate their financial stressors on their own, without a realistic pathway toward their savings and retirement goals.

Key takeaway: FIs should offer personalized retirement advice and savings tools tailored to Gen Xers' needs, ensuring they are aware of these beneficial options. Related marketing campaigns should target current and potential Gen X customers.

Because they're less inclined to seek assistance, guiding Gen Xers toward helpful tools and resources can deepen customer bonds and enhance their overall value to the FI.

First Published on Apr 19, 2024

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