The Lost Retirement Generation? Gen X Missed Out on Auto Features in the Early Years of 401(k)s

Credit: Hyejin Kang/Adobe Stock

The oldest members of Gen X will turn 60 next year, and many will be thinking about retirement soon. However, just 14% of Americans between the ages 44 and 59 (Gen X) believe they have saved enough money for retirement, according to the Schroders 2024 U.S. Retirement Survey. 

When asked how much money is needed to retire comfortably, Gen Xers say on average it will take $1,069,746 in savings, yet they expect to have just $602,944 saved by the time they leave the workforce.  The resulting savings gap of $466,802 is larger than the shortfall millennials ($322,128) and baby boomers ($353,069) expect to face. Millennials (ages 28-43) believe they will need $1,171,067 to retire comfortably and expect to have $848,939 saved, while non-retired baby boomers (ages 60-79), believe it takes $1,004,742  to retire comfortably, and expect to have $651,673 on hand. “If planning and saving don’t become higher priorities, Gen X could become the lost-retirement generation,” said Deb Boyden, Head of US Defined Contribution, Schroders.  “As the first generation to come of age with 401(k) plans rather than traditional pensions as their primary retirement savings, many Gen Xers missed out on the automation features that were not available in the early years of 401(k)s, such as auto enroll, auto escalate and QDIAs [Qualified Deferred Investment Alternatives] for a good part of their savings. However, even the oldest Gen Xers have several years left to better prepare financially before reaching their full retirement age.”