Generation X women, born between 1965 and 1980, participating in a new study expect to need more money to retire comfortably than any other generation.
Gen X women expect to need more than $2 million to retire comfortably, according to the results of the Northwestern Mutual’s 2024 Planning & Progress Study, released this month. That’s more than twice the savings that Baby Boom women, born in 1946 to 1964, expect to need — that amount is $902,000.
The research was conducted online Jan. 3 to 17 by the Harris Poll on behalf of Northwestern Mutual among 4,588 women aged 18 or more years.
Forty-two percent of Gen X respondents said they do not see themselves as financially secure. Ten percent of the participating Gen X women said they are unemployed and unable to work due to an injury or an illness.
Moreover, only about a third (36%) of all Gen X women surveyed said they have a handle on how much they will need to save for retirement, according to the survey. One-fourth of the respondents said they have less than one times their current annual income saved for retirement.
“Now is the time for Gen X women to convert their anxiety into confidence with a plan — specifically, a comprehensive financial plan created with an adviser who gets you. Their experience should also be a wakeup call for younger women that building a great plan now can help make the most of the time to save and reduce the worry down the road,” said Kamilah Williams-Kemp, chief product officer at Northwestern Mutual.
Gen Z participants, born between 1997 and 2012, are more optimistic about saving for retirement than are previous generations. Sixty percent of the Gen Z women said they expect to be financially prepared to retire when the time comes, compared with 40% of Gen X women.
Gen Z respondents said they expect to retire earlier than the baby boomer participants and to pay off student loans faster than the millennial participants, born between 1981 and 1996.
“The youngest generation of women is setting ambitious financial goals, and with their rising incomes, side hustles and early investing, they may have the financial fuel they need to reach them,” Williams-Kemp said.
