Are Gen X investors ready for retirement? Data from the recent Natixis Investment Advisors Global Survey of Individual Investors found that many Gen X investors are uncertain about whether they’ll be able to retire at all. Almost half shared that they believe it will take a “miracle” to retire securely. Some more are optimistic, but overall, those survey takeaways may provide some helpful insights for advisors with Gen X clients.
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While some three out of five Gen X investors who responded to that survey accepted that they may have to work longer, that work alone may not meet their goals. Investing needs to play a part in their plans, too. On the way, however, stand a long and short-term challenge in inflation and public debt crippling public services, the report’s authors suggest. Some 83% of Gen X investors reported concerns about inflation to the survey operators.
Gen X Investors: Survey Results
That speaks to the case for taking more risks in a portfolio to stretch to those goals. While Gen X investors shared that, on the surface, they would be alright with taking on risks and digging deeper, they may still be too inclined due to age to avoid risks. The Gen X investor survey found that while 62% said they were comfortable taking risks to meet their goals when forced, 72% said they would choose safety over performance.
One example of how to avoid that pitfall is cash. Cash may have offered some advantages over the last few months as rates increased yields. However, given the advanced ages of Gen X investors, accepting cash yields may not provide enough returns. Even passive equities investing may not offer sufficient returns.
Active strategies from boutique managers ay provide a notable solution. Active ETFs, for example, leverage significant research and managerial experience may produce returns needed to help Gen X meet their goals. ETFs from Natixis Investment Managers and its affiliated shops, like the Natixis Vaughan Nelson Select ETF (VNSE ), may be worth a look in that case.
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