Gen X worries more than others about retirement

“While many gen X Americans are in the prime earning years, they are less likely to have a defined benefit plan than boomers and more likely to be aware of risks associated with retirement and the challenges they face to save enough to achieve a secure retirement than younger consumers,” says Alison Salka, corporate vice-president and director of LIMRA Retirement Research. “They also may be managing multiple financial demands, like saving for a child’s education or helping older parents. Meanwhile, baby boomers probably already have a realistic picture on their retirement outlook.”

Almost three-quarters of survey participants have taken at least one step toward securing their golden years. Contributing to an employer-sponsored retirement savings plans is the most common step among full-time workers, according to the survey. Employees over 55 are more likely to have taken more steps, such as calculating their retirement income, discussing planning with a professional and determining their retirement expenses.

Read: Late boomers, generation X less prepared for retirement

The survey also reveals that only half of respondents feel somewhat or very knowledgeable about investments and financial products. Women, younger Americans and lower-income individuals give themselves a lower score than their counterparts.

Six in 10 surveyed women feel they have little or no knowledge of financial products and investments compared with four in 10 men. “Interestingly, though, women and men had similar average scores on a financial literacy quiz LIMRA offered earlier this year,” says Salka. “Research has shown that women control or play an important role in most household’s financial decisions, […] yet they still don’t believe they have the knowledge they need.”

But the good news is that Americans want to acquire financial literacy, according to the survey. Nearly four in 10 respondents are interested in learning more about generating retirement income; three in 10 want to learn about investment basics; and one-quarter want advice on how much to save.

“Retirement readiness is in the news these days, but without the knowledge or guidance to help them make appropriate choices, consumers are likely to fall short of their financial goals,” says Salka. “The industry can take advantage of this appetite for knowledge by implementing financial literacy programs to help consumers learn how to budget, get out of debt, save and plan for retirement.”

Conducted in July, the survey polled 2,032 Americans.

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