Half of Gen X expects to outlive retirement savings, study finds
A Northwestern Mutual study cited by Yahoo Finance highlights concerns about delayed saving, investment choices and retirement spending among Gen X adults.
Half of Gen X adults expect to outlive their retirement savings, according to a Northwestern Mutual study cited by Yahoo Finance. Almost half of the generation either expects to work during retirement or is already doing so.
The article identifies delayed saving as one potential risk, with 45% of Americans saying they wish they had started earlier. Compound interest means contributions have longer to grow when saving begins sooner, although outcomes depend on investment performance and other factors.
It also cautions against excessive risk aversion. Keeping retirement funds solely in high-yield savings accounts may limit long-term growth, while retirement accounts can offer tax advantages. The article does not establish a guaranteed investment return.
Planning withdrawals and future expenses is another focus. Healthcare costs can be significant: Merrill Lynch is cited as estimating that a 55-year-old couple may face more than US$1 million in healthcare costs during retirement. The study’s sample and methodology were not provided.
The article also flags leisure spending, including travel, as a cost retirees may underestimate, particularly during the first years after leaving work. Conversely, research from the Certified Financial Planner Board found retirees spend about half of their savings, potentially reflecting uncertainty about future needs.
The article recommends considering professional financial advice when deciding how much to withdraw and how to allocate investments. It presents the material as information rather than financial advice.
