PLANADVISER - March/April 2019 - 16

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Female Gen Xers at Risk
The singles in that group trail Generation X and the Boomers in savings
at the lowest income quartile have at
least a $100,000 RSS, which connotes
serious potential
financial complications
in retirement. This compares to
one-third of single males and 42% of
widows. Even in the highest income
quartile, 13% of single females have
an RSS of at least $100,000 vs. 7% for
single males, 4% for widows and 3%
for widowers.
Defined contribution (DC) retirement
plan eligibility helps with the
shortfalls. Single females with no
future eligibility to join a defined
contribution plan have an average RSS
of $97,325 vs. the $24,486 average RSS
of those with at least 21 to 30 years of
future eligibility.
The average RSS is $39,016 worse
single
for
females than for
single
males with no future DC plan eligibility.
The discrepancy in the average
RSS between widows and widowers
with no future DC plan eligibility is
$6,529.
Boomers Confident
Seventy-five percent of Baby Boomers
think they will have enough money
to live comfortably in retirement, but
this is true for only 35% of Gen X,
according to a new report from Retirement
Living, " Retirement Preparedness
Study 2019: Baby Boomers vs.
Generation X. "
Boomers rely primarily on pensions
A CUT of data about Generation X
from the Employee Benefit Research
Institute (EBRI)'s Retirement Security
Projection Model (RSPM)-which
can assess the size of households'
retirement deficit by modeling retirement
savings shortfalls (RSSs) found
the retirement deficit-or additional
savings required to meet basic needs in
retirement-is higher for both widows
and single females than for widowers
and single males.
The average RSS is $18,476 for
married households where the female
dies first, leaving a widower; the
average RSS is $22,783 for married
households where the male dies first,
leaving a widow. In contrast, the
average RSS is $37,690 for single males
and $72,883 for single females.
According to the analysis, single
Gen X females are the only cohort
where at least 50% of households
have a deficit. The median RSS for
this group is $19,900, and 10% of
single females have an RSS of at least
$222,592.
Nearly half (48%) of single females
and 401(k) plans, while Gen Xers look
to 401(k)s and individual retirement
accounts (IRAs). Both Boomers and
Gen Xers factor Social Security into
their saving equation.
Fifty percent of Baby Boomers and
Gen Xers have saved or are on track
to save $700,000 or less. Boomers
think that is adequate savings, while
members of Generation X do not.
The
survey
found that
65% of
Boomers saving for retirement are men
and 35% are female. Among Gen X, this
is evenly split at 50% for each sex.
-Lee Barney and Rebecca Moore
16 | planadviser.com March-April 2019
Art by Julianna Brion
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PLANADVISER - March/April 2019

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