Gen Xers are stressed out about the prospect of retirement, with only 31% of them believing they will be able to retire from the workforce.
A survey commissioned by Scottrade and BetterInvesting found that 43% of people between the ages of 27 and 42 feel they will never be able to fully retire, and 26% said they are unsure about their ability to retire.
The study shows Gen Xers are the most stressed group financially right now, said Chris X. Moloney, chief marketing officer for Scottrade. They are earning money and paying into Social Security and yet they fear they may never see the payback. They feel they deserve it, but it looks like a financial black hole to them right now.
Approximately 40% of Gen Xers surveyed said they are saving more today because they cant rely on Social Security, even though 87% said they deserve to get benefits from Social Security. Gen Xers are saving their money primarily in 401(k)s, IRAs and retirement savings accounts.
Investors are being slammed with tidal waves of discouraging news about the economy, which certainly contributes to their long-term fears about retirement, said Bonnie Reyes, president of BetterInvesting. But the good news is this, too, shall pass. Those who invest early and regularly and stay the course during these more challenging times are the ones for whom history shows great rewards.
The survey found that Gen Xers are taking action, saving more and spending less, compared to other age groups. Also, the survey found a large percentage of Gen Xers are paying off debts and credit cards.