AARP Finds Many Older Workers Lack Retirement Savings
According to an AARP analysis of private-sector workers in the U.S., about 40% of those aged 55 to 65 do not have a retirement account. The average Gen Xer has saved just $215,000 for retirement. This generation, born between 1965 and 1980, faces unique financial challenges due to economic downturns like the dot-com crash and Great Recession, as well as ongoing inflation. Gen Xers are often referred to as the 'sandwich generation' because they support both their children and aging parents. Many have delayed retirement or struggled with savings due to limited employer-sponsored plans and high living costs. Unlike previous generations who had traditional pensions, Gen X relies heavily on 401(k)s, shifting more responsibility onto individuals. Fidelity research highlights the low average balance for this age group, which may leave many relying solely on Social Security in retirement. Experts suggest strategies like maximizing workplace contributions and using catch-up provisions to improve savings outcomes.
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Topics: AARP research generational economics retirement savings