Gen Xers will not retire comfortably, Schroders finds

investmentnews.com:

Many Americans’ lives consist of going to school, getting a job, buying a home, having a family and saving for a nice retirement. For Gen Xers, on the other hand, that doesn’t seem to be the case – at least when it comes to retirement.

As the cost of living continues to go up, so do the dreams of Gen Xers who would like to retire, according to the latest survey from Schroders.

Schroders found that Gen Xers – non-retired Americans between the ages of 43 and 58 – on average think they need $1,112,183 in savings to have a comfortable retirement, yet they expect to have just $661,013 saved.

While these results may paint a grim picture, advisors say it’s anything but.

“Most clients I’ve talked to, they’re not looking to do a hard stop in retirement, like hit a certain age and be 100% done, they’re just looking to downshift,” said Jeff Farrar, chief operating officer and managing director at Procyon Partners.

Ferrar, who’s considered Gen X himself, said the definition of retirement is changing and so is the age.

“If you’re still working, even if it’s part-time or a different job, that helps the retirement goal, because you’re still bringing in some cash flow with the longer ability to save,” Ferrar said.

Liz Windisch, certified financial planner at Aspen Wealth Management and also a Gen Xer, said it’s OK for Gen Xers to seek assistance with retirement planning.

“It’s time for them to get professional help,” she says. “I’m not just saying that because those are my clients, but you’re running out of time, and having a professional help you can make a huge difference. It’s time to buckle down, figure out what they need to do.”

The study also found 61% of non-retired Gen Xers aren’t confident in their ability to achieve a dream