Generation X is gloomy, but their retirement reality may not bite

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Generation X is often labeled the generation least financially prepared for retirement. There’s good evidence that many in this cohort are woefully behind in saving, for a plethora of reasons.

But a new report has a different spin on that specter with evidence that things may be on the upswing for those born between 1965 and 1980 — even if they refuse to believe it.

According to new research from the FINRA Investor Education Foundation, Gen Xers are doing fairly well financially, at least in terms of retirement preparedness and debt management.

“The news about retirement savings is generally positive for Gen X,” Gerri Walsh, president of the FINRA Investor Education Foundation, told Yahoo Finance.

Over 6 in 10 Gen Xers have some type of retirement account. And among Gen X retirement savers, the vast majority are actively contributing to their accounts, and few are withdrawing assets from them.

“Gen Xers are faring better than younger generations and comparable to boomers on the retirement measures we examined,” Walsh said.

A recent Bank of America research report corroborates this good news vibe.

Not only has the share of Gen X 401(k) participants that increased their contribution rate bumped up this year over last, but also “data suggests that some Gen X households are investing relatively large quantities of their paychecks … to fund additional investment accounts,” according to the researchers.

“In fact, the average amount invested by Gen X from after-tax earnings is over 40% higher than the overall population and higher than all other generations.”

Read more: Retirement planning: A step-by-step guide

“Super savers” are workers who participate in a 401(k) or similar retirement plan and contribute more than 10% of their salaries to it.

Research from the Transamerica Center for Retirement Studies found that the percentage of Gen X super savers has climbed significantly from 3 in 10 in 2019 to 4 in 10 this year.

“The increase for Gen Xers is truly impressive,” said Catherine Collinson, CEO and president of Transamerica Institute and Transamerica Center for Retirement Studies.

That’s significant given that the oldest Gen Xers are less than a decade away from a target retirement age of 65.

“Retirement is a light that is growing closer and brighter on the horizon for Gen X,” she said. “It is becoming more real — procrastination is not an option.”

Read more: What is the retirement age for Social Security, 401(k), and IRA withdrawals?

A new report finds things may be on the upswing for those born between 1965 and 1980 — even if they refuse to believe it. (Getty Creative) · Delmaine Donson via Getty Images

Sounds rosy, right? Try telling that to the so-called slackers.

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