UniSuper’s Derek Gascoigne says many Gen X feel like they’ve ‘missed the boat’, with half feeling unprepared for retirement. (Source: Getty/UniSuper)
The first wave of Gen Xers are about to hit retirement and they are facing a very different set of circumstances from the generations that came before them. Despite holding the most wealth in property and shares of any generation, half of Gen Xers have admitted they don’t feel financially prepared for their golden years ahead.
Born between 1965 and 1980, the oldest members of the five million-strong cohort are now entering their 60s. This means they have reached their “preservation age”, which is when their superannuation can be accessed if they are no longer working.
UniSuper advice manager Derek Gascoigne, a member of Gen X himself, told Yahoo Finance the national conversation around retirement had largely been Baby Boomer-focused, leaving the issues facing Gen X “somewhat invisible”.
RELATED
“You’ve got higher living costs, you’ve got non-linear career journeys with people changing careers and it’s not just a job for life,” he said.
“The financial pressures that are facing the generations following Gen X are to some extent the problem for Gen X because they’ve got younger and adult children trying to get into the housing market, looking to the Bank of Mum and Dad for support.
“Then you’ve got aging parents, many of whom didn’t get to accrue wealth outside of property in a lot of cases.”
There’s also the looming intergenerational wealth transfer, with Baby Boomers set to leave younger generations $5.4 trillion over the coming decades.
Gascoigne said these shifting environmental factors meant Gen X were entering retirement with “way more complexity” than previous generations.
“Boomers will no doubt argue the toss on that,” he said.
Do you have a story to share? Contact tamika.seeto@yahooinc.com
Gen X worried about retirement
UniSuper research found that half of Gen X believed they were not financially prepared for retirement. The biggest worry was not having enough savings to live the kind of retirement they wanted.
The average Gen X super balance is below where it needs to be to achieve a comfortable retirement, with UniSuper finding more than two-thirds have less than $500,000.
At 67, ASFA estimates homeowners would need $630,000 as a single and $730,000 as a couple to achieve a comfortable retirement. To achieve that, you’d need $296,000 at 50, $377,000 at 55, and $469,000 by 60.
By contrast, the average account balance for the 50 to 54 age group is $222,491, while the median is lower at $147,857.