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For the generation that should be in its “peak savings years,” the prospect of retiring on time has shifted from a plan to a prayer.
A recently released financial wellness survey for employees by Found PwC that nearly 50% of Generation X workers are delaying their retirement dates, citing stagnant wages, rising daily costs and a lack of liquid savings.
Additionally, only 38% of Gen
“For employers, this is not a future problem. Financial concerns during peak years in their careers can affect focus and engagement,” PwC researchers write. “When the risks are clear, the question is why more employees aren’t taking action. It’s not a lack of willpower. Most employees want stability, trust and a sense of control. But many don’t feel equipped to achieve that.”
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The main cause of this delay in retirement is the inability to save as inflation eats away at monthly expenses, the report said. Twenty-five percent of the total working population lives without a buffer, and almost half cannot meet basic household expenses.
Nearly half of Gen X employees are postponing retirement, PwC reports. (Getty Images)
“[Forty-nine percent] say their compensation is not keeping pace with costs. As expenses rise faster than revenues, daily trade-offs become routine. Employees don’t just feel pressured. They make difficult financial decisions to stay afloat,” the PwC report continues.
As a result when Gen Xers cannot afford to leave their current job, causing the entire corporate ladder to stall, creating business risks, where companies face higher costs because older talent remains on the payroll longer than expected.
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“If workers draw on pension funds early or postpone their retirement altogether, this will not only impact personal finances and leakage from pension plans,” the report said. “It can also impact workforce planning, health care costs, succession timing and overall organizational stability.”
The findings also show that a significant proportion – 41% – of the workforce feel they have never been given the tools to manage a crisis of this magnitude, leading to feelings of being ‘overwhelmed’ by financial choices.
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PwC issued a call to action for employees and their employers, encouraging them to reduce the stigma around financial education, promote confidence through human coaches, emphasize skills building and focus on day-to-day finances before long-term goals.
“Employees define financial wellness simply: less stress, fewer surprises and the freedom to make financial choices with confidence. For employers, that’s the opportunity.”
