A new analysis from Northwestern Mutual highlights stark differences in how women from various generations approach retirement planning, with Gen X women showing the highest levels of financial anxiety.
In the latest findings from its 2024 Planning & Progress Study, it found Gen X women believe they will need more than $2 million on average to retire comfortably, handily out-worrying other generations. In contrast, Boomer women estimate their retirement savings target at $902,000, while millennial women expect they'll have to set aside $1.5 million.
Just as experts agree there's no magic number for retirement, the survey reveals stark differences in retirement expectations across generations. Nearly 60 percent of Gen Z women feel confident they will be financially prepared for retirement, compared to just 40 percent of Gen X women.
Gen X women were the furthest away financially from their ideal retirement savings target, with just $95,000 set aside for their later years, which may help explain why 42 percent of Gen X women describe themselves as financially insecure.
“It can be especially stressful to see retirement out on the horizon and not feel prepared," Kamilah Williams-Kemp, chief product officer at Northwestern Mutual, said in a statement. "Now is the time for Gen X women to convert their anxiety into confidence with a plan.”
While retirement anxiety weighs heavily on Gen X women, the study found more optimism among younger women. Gen Z women, for instance, aim to retire nine years earlier than their Boomer counterparts, at age 62 versus 71. They also anticipate paying off their student loans a full decade earlier than Millennials, by age 33 compared to 43.
Income growth also appears to be stronger among younger women. About four in ten Gen Z and Millennial women reporting that their earnings are either outpacing or keeping up with inflation, compared to a third of those from the Gen X and Boomer generations.
When it comes to financial advice, younger women are more likely to rely on family members or spouses, while older women tend to trust financial advisors more. However, the study found a significant portion of women – one-quarter overall and nearly one-third of Boomer women – are not receiving any financial advice at all.
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