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Generation Xers Feel Most Stressed
KANSAS CITY, (kansascityfrontpage.com), March 29, 2009 - The number of Generation Xers (ages 27 to 42) who are unprepared for retirement is dramatically on the rise, according to a new study commissioned by Scottrade. More than half (52 percent) of Gen Xers currently have saved less than $25,000 for retirement. This number marks a significant change from 2008, when 40 percent reported being below the $25,000 mark, indicating that this generation's retirement savings have suffered greatly due to the economy.

"Boomers get all the attention, but these surprising results show that Gen X has more financial heartburn right now than any other generation," said Chris X. Moloney, Scottrade's chief marketing officer and executive director of customer intelligence.

The survey revealed the likely causes: Almost two-thirds of Gen Xers (63 percent) saw the value of their retirement accounts decrease last year, and more Gen Xers (15 percent) had to withdraw funds from their retirement accounts than any other non-retired generation.

"Their accounts are dwindling and many are not saving this year due to the economy. In fact, our research found that Gen X is no more likely than younger Gen Y investors to contribute to an IRA," Moloney said. "Gen Xers feel like they're doing a high wire act toward retirement and fear that Social Security will not be the safety net they thought it would."

Of all the generations, Gen X is the most worried that Social Security will run out (62 percent). The dual stresses of smaller savings and lack of confidence in Social Security are drivers of Gen X's top financial concern: 64 percent are worried about not having enough money for retirement.

Overall, Gen X is the most financially stressed generation for the second year in a row. Given a list of 18 general financial concerns, Gen X, more than any other generation, is "extremely" or "very" concerned about the following issues:

* Paying for unexpected, major expenses (61 percent)
* Managing day-to-day expenses (60 percent)
* Having too much debt (57 percent)
* Paying off credit card balances (52 percent)
* Having no/reduced income due to job loss (52 percent)

"It's not surprising that Gen X is again the most stressed because this generation is the most conflicted between paying for day-to-day expenses, saving for children's education, and saving for retirement," Moloney said.

"The economy has made this an emotional time for investors," said Kamie Zaracki, CEO of BetterInvesting. "However, the most important things to remember are discipline, strategy and persistence. Gen X still has plenty of time to bounce back from the downturn."

Bright Side: Gen X is Taking Action

The study did deliver some promising news about Gen X. Like last year, Gen X is the most proactive generation with 98 percent of Xers taking actions to offset financial stresses, including:

* Comparing prices to find the best deal (69 percent)
* Using coupons (66 percent)
* Cutting back on entertainment (65 percent)
* Paying down debts (57 percent)
* Reducing credit card spending (55 percent)
* Cutting back on travel/vacations (46 percent)
* Cutting or eliminating services such as cable TV (30 percent)

In addition to the actions listed above, this generation is also paying closer attention to the fees many brokers and investment firms charge for their services. In fact, one in three (33 percent) are paying more attention to such fees than they were just a year ago.

"Gen Xers are entering into their prime earning years and yet they are losing sleep over making ends meet," Moloney said. "Fortunately, this generation is proactive and focused on fiscal responsibility."

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