Most Gen X 401(k) Participants Lack Confidence in Retirement Preparedness 

Four out of five Generation X 401(k) participants are not confident they will be able to maintain their current standard of living in retirement, according to the latest Cerulli Edge—U.S. Retirement Edition. The report underscores that two-thirds of Gen Xers have less than $100,000 in individual retirement assets, leaving many ill-prepared for the transition from saving to drawing down assets in their later years. 

The study reveals that 58% of Gen X 401(k) participants are entering this critical pre-retirement stage without the help of a financial advisor. Nearly half admit they do not feel qualified to make their own retirement investment decisions, with 32% citing advisor fees as too high and 29% saying they don’t know how to find one. Instead, 65% of those without an advisor rely primarily on their plan recordkeeper or employer for retirement planning support. 

The Boston-based consultancy firm notes that this creates a clear opening for recordkeepers and advisors to provide targeted guidance, from savings and drawdown strategies to Social Security timing. Importantly, 75% of Gen X participants who do work with an advisor report finding retirement planning advice “very valuable,” highlighting the impact of professional guidance.  

“Given this difficulty in finding an advisor and the belief that they cannot afford one, an opportunity exists for both recordkeepers and advisors to engage with participants, identify their needs, and make them aware of how they can access help with planning and investment advice,” said Elizabeth Chiffer, research analyst.