Inflation crushing Generation X’s “retirement dreams”: Natixis IM

New research from Natixis Investment Managers has revealed the retirement fears now plaguing Generation X are primarily driven by inflation and debt.

The survey, conducted in collaboration with CoreData Research, found 31 per cent of the cohort are concerned they will never have enough funds to retire and 48 per cent are concerned they will run out of money during retirement.

The results also indicated that their fears were exacerbated by worries over inflation and debt, with 69 per cent saying inflation has interfered with their retirement savings, 55 per cent revealing they are saving less due to higher everyday costs and 41 per cent saying inflation is “killing their dreams of retirement”.

Over three-quarters (77 per cent) of Generation X members surveyed said they were worried public debt would result in limited retirement benefits, with 58 per cent believing it will be challenging to keep afloat without benefits.

Natixis IM’s research also found the majority of Generation X research participants (56 per cent) said they will require professional advice to achieve their financial objectives and access retirement income opportunities. However, the results also suggested 49 per cent of Generation X-ers prefer digital advice, up from 35 per cent five years ago.

“Gen X are facing a complex set of circumstances that perhaps make them the generation with the greatest need for financial advice in modern times,” Louise Watson, Country Head of Australia and New Zealand at Natixis Investment Managers, said.

“Concerns about inflation, mounting public debt, global geopolitical uncertainty, and domestic issues like the housing and cost-of-living crises have made retirement a daunting prospect for most Australians in this cohort. At the same time, quality financial advice is difficult and expensive to access.

“It’s no surprise that Gen X, who are often stressed and time poor as they take care of elderly parents while raising children and navigating demanding jobs, are early adopters of digital advice.

“While this technology will help meet some of the demand for financial advice, it can’t yet provide anywhere near the level of complexity and personalised advice of a good financial adviser, reinforcing the crucial role advisers still play for Gen X.”