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New findingsGeneration X - Baby Boomers from the 2018 Insurance Barometer Study finds more Generation X (ages 38-53) consumers worry more about having a comfortable retirement and becoming disabled than Boomers. In addition, more than a third of Gen X consumers worry medical and long-term care expenses could undermine their financial security.

The 2018 Barometer Study finds more than half Gen X consumers are concerned that they will be able to have a comfortable retirement, compared with just a third of Boomers (ages 54-72). Nearly twice as many Gen X consumers are concerned about becoming disabled, compared with Boomers (45 percent vs. 23 percent).

Research shows Gen X consumers are less likely to have access to a defined benefit plan, which could contribute to their concern about their retirement security. While about half of Boomers enjoy a guaranteed income stream through a pension, more than two thirds of Gen X workers will be responsible for creating retirement income through their savings. It is not surprising that Gen X workers worry about the financial risks of becoming disabled, incurring medical or long-term care expense because these risks could undermine their efforts to save for retirement.

So much attention has been focused on Boomers and Millennials but Gen X offers a significant opportunity for financial advisors. LIMRA Secure Retirement Institute estimates that Gen X households have an average net worth of around $450,000 and have the time to growth that wealth over the next 10-20 years as their earnings peak. They are also expected to inherit a significant portion of the $52 trillion in financial and non-financial assets currently held by Americans over age 60.

The leading edge of Gen X have entered their 50s and – if they haven’t already – should be beginning to plan for retirement. Financial advisors should start to discuss developing a formal retirement plan, addressing Gen X consumers’ top concerns of protecting family income from risk of becoming disabled or incurring large medical expenses.

The formal retirement plan also can be a valuable tool to help Gen X clients develop a budget to manage debt, college expenses and developing an emergency fund while calculating the savings-gap for their desired lifestyle in retirement. LIMRA SRI research has found that those with a formal plan are far more likely to feel confident in their retirement outcomes.

This is a critical time for Gen X clients as they reach their peak income-earning years. Advisors can provide guidance on the best strategies to maximize their retirement savings and help them feel more confident in their future.

Media Contacts

Catherine Theroux

Director, Public Relations

Work Phone: (860) 285-7787

Mobile Phone: (703) 447-3257

ctheroux@limra.com

Brooke Lacey

Public Relations Specialist

Work Phone: (860) 298-3920

Mobile Phone: (413) 530-6184

blacey@limra.com