Global report finds Gen X staff 'alone and exposed' on retirement funding
More than eight in 10 Gen X employees believe their employers should also help employees achieve retirement security, according to a new report.
The Natixis Investment Managers Survey polled 8,550 individual investors in 23 countries to determine the perspectives of Generation X on retirement.
It found that 60% of Gen X employees accept that they may need to work longer instead of retiring as 82% recognise that funding for retirement is now their responsibility.
However, their plans to work for a longer time face challenges, with 47% worried that they won't be able to work long enough.
According to the report, a late-career layoffs can disrupt their retirement savings plans, as well as personal illness or disability that could prevent them from performing their job.
Employers' assistance needed
The findings indicate that Gen X employees feel "alone and exposed on retirement funding," according to the report.
"But this generation that's been minding themselves since grade school doesn't think they should still have to go it alone," it read.
For 83% of Gen X employees, employers should also be responsible for helping them achieve retirement security. Among the steps employers could take would be to offer pensions instead of defined contribution plans, according to 79% of the respondents.
For those offering defined contribution plans, employers can still help stimulate savings by:
- Providing access to investments that reflect their values (75%)
- Providing professional advice in selecting investments in their plan (67%)
Liana Magner, Head of Retirement and Institutional in the US for Natixis Investment Managers, said Gen X people are at a "critical juncture" amid high costs, market volatility, and dwindling benefits.
"As they seek solutions to address these anxieties, it will be increasingly important for them to utilise resources, including financial advisors, to deploy strategies that help them navigate retirement," said Magner, who is also the executive vice president in the US for Natixis Investment Managers, in a statement.
