Gen X Nears Age 62 With Median $107,000 Saved as Social Security Faces 22% Cut Risk
Updated
Updated · CBS New York · Aug 24
Gen X Nears Age 62 With Median $107,000 Saved as Social Security Faces 22% Cut Risk
3 articles · Updated · CBS New York · Aug 24
Summary
Gen Xers approaching retirement say many are unprepared to stop working, with the oldest turning 62 next year as Social Security eligibility begins.
Median retirement savings for the cohort are about $107,000, far below the roughly $700,000 they think they need, after entering a system that shifted from pensions to worker-managed 401(k)s.
41% of U.S. workers over 55 now expect Social Security to be their primary retirement income source, up from 25% last year and above the 26% relying mainly on retirement accounts.
Only about 14% of private-sector workers still have pensions, leaving most Gen X households dependent on a 'two-legged stool' of 401(k)s and Social Security.
Social Security's trust fund is projected to run short in 2032, which could trigger a 22% benefit cut just as millions of Gen Xers reach retirement.