The first people belonging to the Generation X, that is, those born between 1965 and 1980are a few months away from reaching 60 years of age, and very close to reaching retirement age, which in the case of Mexico is 65 years.
And many of them say they are worried about the future, and some even fear they will not be able to retire.
A survey by global financial services firm Natixis Investment Managers found that nearly half of Gen Xers (48%) believe it will take a miracle to retire safely, while the other half (50%) avoid thinking about retirement at all.
Respondents say they are concerned about the lack of sufficient resources: 60% agree that they may have to work longer.
“As retirement approaches, Generation X will need to begin having more specific conversations about how to optimize accumulated assets to generate sustainable income in retirement,” said Mauricio Giordano, Country Manager, Natixis IM Mexico, in a report.
“Much of this generation accepts that they may need to work longer than they would like, which can be easier said than done. A late layoff in their career, or taking time off work to care for an elderly parent or sick child, or suffering a disability that prevents them from doing their job, can disrupt their retirement savings plans,” he added.
When asked about their retirement goals, Gen Xers surveyed say they plan to retire at age 60 on average, an early age by global standards.
They anticipate retirement will last 20 years, a shorter period than many retirees experience.
How do Generation Xers plan to face retirement?
Natixis IM notes that people save an average of 17% of their annual income for retirement.
However, 69% say inflation has affected their ability to save for retirement and more than half (55%) report they are saving less due to high living costs.
The survey was conducted by CoreData Research in March and April 2023 and included 8,550 individual investors across 23 countries.
