Finance

45% of Generation X is not confident about their retirement

Published

2 months ago

March 28, 2025

Ramsey Solutions financial expert George Kamel weighs in on Americans working past retirement age and provides advice for investors.

As Generation X continues getting closer to retirement, some have less than rosy views about their retirement prospects, according to a recently-released study from Fidelity Investments.

Fidelity Investments found in the latest edition of its annual “State of Retirement Planning” study that 45% of Gen Xers – those between the ages of 44 and 59 – reported feeling they were “not confident” in their ability to retire “when and how they want.”

Meanwhile, 53% felt confident they could do so.

A person puts money into a retirement savings jar. (iStock / iStock)

“Gen X is most likely to be what we call the sandwich generation right now,” Fidelity Investments Vice President of Retirement Offerings Rita Assaf told FOX Business. “They are caring for both children and aging parents, as well as preparing for retirement. That’s pretty costly.”

“They’re also at a time where higher cost of living, so if they’re helping with children, they most likely have kids in college or maybe they just finished college, and those costs have been much higher,” she continued. “Their day-to-day expenses are much higher. And we also know with aging parents, the healthcare and long-term care costs associated with that as well.”

Assaf said Gen X being poised to be the first “401(K) generation” has also driven those figures.

“Current retirees are primarily using still pensions as their primary way to fund their retirement savings, but Gen X, I think our study found 61% will be leveraging 401(K)s and IRAs and individual savings vehicles for retirement, so that’s a big difference as well,” she noted.

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Compared to last year’s study, Gen X confidence in retiring “when and how they want” dropped 16 percentage points, something that Assaf linked to higher cost of living and members of the generation moving nearer to retirement age.

She said the survey “really highlighted the fact that with higher cost of living, there’s a bit of general concern that ‘will my retirement savings last’?”

Gen X “notably hold the most negative retirement outlook” among the four generations included in the study, according to Fidelity Investments.

The study found Gen Z and Millennials felt the most confident about retiring “on their own terms,” at 75% and 71%, respectively. Meanwhile, 68% of Baby Boomers reported they were confident.

For Gen X, juggling children, aging parents and higher costs of living have played into that. Assaf also said that “anxiety tends to raise as you get close” to retirement.

Younger generations like Gen Z and Millennials “still have a long time-horizon so they’re actually feeling more confident” and “have more time on their hands to save more and invest and reap the benefits of compound earnings,” according to Assaf.

Overall, 67% of those in their retirement planning years felt positively when it came to retiring “when and how they want,” Fidelity Investments said.

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The study was based on a survey that involved over 2,000 “adult financial decision makers” with a minimum of one investment account.

Socking away sufficient money, inflation and high costs of living, striking the balance of covering expenses now versus saving for retirement and figuring out the amount of funds needed for retirement were among the issues respondents identified as those posing the most challenge, according to the study.

Closeup of a senior man’s hand calculating bills at home (iStock / iStock)

Meanwhile, among current retirees, the Golden Years were “going as planned” for 72%, the study reported. A similar share – 70% – also felt their retirement planning set them up sufficiently.

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When it came to retirement income, 77% of retirees pointed to Social Security as their top source, according to the study. Behind that was pensions, at 48%, and personal savings, at 41%.

A retired couple walks arm in arm on the beach. (Annette Riedl/picture alliance via Getty Images / Getty Images)

“Planning does not stop at retirement,” Assaf told FOX Business. “You have to keep evolving your planning, even when you’re in retirement.”

The savings of seven in 10 retirees have taken a hit from the rising cost of living, the survey said.

The Transamerica Center for Retirement Studies found in an August 2024 report that the median age of retirement for middle-class retirees was 62.

Americans think $1.46 million is the amount of money necessary to experience a comfortable retirement, according to a study released by Northwestern Mutual last year.

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What the Trump tax bill means for your wallet

Published

1 day ago

May 24, 2025

Business Finance News

Treasury Secretary Scott Bessent joins ‘America’s Newsroom’ to discuss a possible 50% tariff on the European Union, a 25% tariff on Apple, possible Senate changes to Trump’s ‘big, beautiful bill’ and the push to modernize the IRS.

President Donald Trump’s “big, beautiful bill” cleared the House and is making its way through the Senate.

Still, critics point out the bill, which is over 1,000 pages, will add trillions to what is already ballooning government debt hovering at $36 trillion and deficits. However, U.S. Treasury Secretary Scott Bessent believes this can be managed.

“We think that we can both grow the economy and control the debt. What’s important, Bill, is that we grow the economy faster than the debt. What I would tell your viewers to focus on, what I am focused on, what Secretary Yellen was focused on is what is the total debt to GDP because we can grow our way out of this,” Bessent said during an appearance Friday on Fox’s “America’s Newsroom” with Bill Hemmer.

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Still, the bill contains several provisions that will benefit American workers and everyday households. FOX Business explains how your money may be affected.

NO TAX ON TIPS

Hardworking Americans won’t have to pay taxes on the tips they make. While this is good for service employees, it may mean lost revenue for the government…continue reading here

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401(k) FOR BABIES & CHILD TAX CREDITS

Typically, you start a 401(k) when you begin working, getting matched contributions from your employer. The bill may expand similar investment vehicles to newborns and other child tax credits…continue reading here.

Little girl sleeping (iStock / iStock)

SALT

High-tax blue states, such as New York, likely secured a win with a big bump for SALT, a deduction for state and local taxes, previously capped at $10,000…continue reading here

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The Midtown Manhattan skyline in New York City April 8, 2024. (Charly Triballeau/AFP via Getty Images / Getty Images)

AUTO LOANS INTEREST FREE

If you own or buy a car made in the U.S. using an auto loan, the interest is on track to be eligible for a deduction…continue reading here.

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MEDICAID SAFE?

Trump made it clear the Medicaid program, which provides basically free health insurance to Americans who meet income requirements, won’t be gutted. Not everyone is convinced…continue reading here

FOOD STAMPS

Changes to food stamps and nutrition assistance, formerly known as SNAP, or the Supplemental Nutrition Assistance Program, are part of the tax bill. Here’s what may change…continue reading here