The oldest Generation Xers (those born between 1965 and 1980) are turning 60 next year. If you're one of them, you'll have a lot to think about since retirement is on the near horizon. Are you prepared?

That's a question studied by Natixis Investment Managers and presented in a new report titled "Natixis Global Survey of Individual Investors" (tinyurl.com/3nhv4ssv). The survey of 8,550 individual investors in 23 countries pointed out some challenges facing this demographic.

Most (82%) Gen Xers surveyed understood that "it is increasingly their responsibility to fund retirement on their own."

Feeling that responsibility should lead to educating oneself -- the sooner, the better -- and worrying about certain things is not a bad place to start.

It turns out that 48% of those surveyed said they were worried they won't have saved enough to enjoy their retirement. Forty-one percent said inflation "is killing my dreams of retirement" (a subject I discussed in a recent column titled "Is Inflation Affecting Savings Rates" -- email me at readers@juliejason.com if you would like a copy).

Thirty-seven percent were worried that their government benefits would be cut. Thirty-one percent said they would never save enough to retire (19% of those surveyed said that even if they saved $1 million, they still couldn't afford to retire).

To me, those worries are healthy and realistic. But this observation is not: expecting long-term returns of 13% above inflation. That's hardly a good figure to use for planning purposes. Here is another misconception: 61% of Generation X investors think index funds are "less risky," and 67% think index funds "are going to protect them on the downside," but "[i]nvestors forget that index funds deliver market returns."

Just think of the bear markets we've experienced. The coronavirus bear market saw a quick decline of 34% in just over a month. And Generation X has experienced some interesting investing times, described as a "25-year bust and boom cycle" by the Natixis report, which cited the tech bubble burst in 2000, the global financial crisis of 2007-2008, and "a decade-long bull cycle that pushed markets to record highs."

This is where it might help to retain financial expertise. And, indeed, 56% of Gen Xers were "convinced they need[ed] professional advice on topics ranging from achieving broad financial planning goals to more specific retirement income plans."

An appropriate retirement expert might help them realize that the most important risk to consider is the risk of not meeting their retirement goals. (Only 11% of those surveyed reached that conclusion, while more respondents defined risk in terms of volatility (25%) and losing wealth (23%).)

Volatility would also be considered, but probably in a different way. We all have to be aware that financial markets have an ebb and flow. Each and every year, even in up years in the market, we experience intra-year declines. Those have to be factored into the equation, as well as bear markets that take time to recover.

While 62% of respondents said they were comfortable taking on risk (which I interpret as risk of loss) to get ahead, 72% also said that, if forced, they would choose safety over investment performance, and 47% indicated they were taking on more risk than they should to get ahead.

That's indicative of mistaken beliefs about how retirement portfolios need to be structured to meet the goal of preserving your lifestyle and, in the right circumstances, perhaps leaving a legacy.

If you are a member of Generation X (the youngest in this category turn 45 in 2025), are your goals and plans in place?

One final point: "Almost half of Gen Xers surveyed (48%) [said] it's going to take a miracle to retire." You don't need a miracle. Just some preparation.

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Are you considering investing in the stock market for the first time, but are hesitating? If you are serious about taking the plunge, think of your situation in terms of behavior change. That is, think of what it takes to go from being an outside observer to an actual newbie "investor."

Behavior change works in stages. The Transtheoretical Model of Behavioral Change (TTM), developed in the late 1970s to describe the "process of intentional behavioral change," can be a guide. (Abstract available at tinyurl.com/yc6tu2sp.)

According to the authors of the study, TTM consists of six stages: "precontemplation, contemplation, preparation, action, maintenance and termination."

Stages can be applied to the hesitant future investor as well. "The New Investor Roadmap," part of the recently released report by the FINRA Investor Education Foundation and Commonwealth titled "Exploring the Stages of the New Investor Journey: Actionable Insights for Industry Stakeholders" (tinyurl.com/mpwxrc9p), does just that. Commonwealth is a national nonprofit building financial security and opportunity for financially vulnerable people through innovation and partnerships. FINRA's foundation provides educational programs and research to help consumers reach their financial goals (tinyurl.com/bdhn96xj).

The New Investor Roadmap identifies four stages: Contemplating; Starting; Engaging and Integrating. As we talk about each stage, see if you can identify where you are in the process.

In Contemplating, one starts "to weigh the benefits, barriers and risks." The length of the contemplating stage can vary, as people consider "whether investing is right for them." This stage can last "anywhere from weeks to years."

Contemplating is a time for gathering information: "Networks, such as family and friends, can help determine how long new investors remain in the Contemplating stage." Also, "Trusted representatives of financial institutions within local communities can help [people] gain awareness and knowledge about investing."

The Starting stage comes next, where "potential investors transition from contemplating to actually opening an account and making their first investment." These newbie investors consider financial basics: "How much to invest, where to invest and risk tolerance."

Making decisions on investments "can be influenced by how easy or difficult products are to understand." Also, investors "are in search of others with similar goals and experiences, including looking toward friends and family for support."

At the third stage, Engaging, these new investors become "more familiar with how investing works" through gaining experience and knowledge.

Now, there is continued learning and self-discovery based on how their investment decisions are playing out. Educational resources (newsletters, webinars, interactive tools) remain important as investors seek to expand their knowledge so they can reach their investment goals and minimize their losses.

In the fourth stage, Integrating, investors "no longer desire to constantly engage with their investment accounts" and "are now in a position to start exploring whether different investment opportunities would align with their objectives and risk tolerance."

Within their personal networks, new investors "recognize the value of accurate information and seek this from trusted professional sources, rather than from family or friends." In addition, "they start sharing their knowledge with family and friends."

Seeing things in stages of behavioral change can help with "an investor's journey, from the first time they learn about investing through becoming a knowledgeable and confident investor," according to the report.

Before leaving this subject, be sure to take advantage of tools and guidance from regulators. FINRA, which oversees the U.S. broker-dealer industry, provides helpful information about investing basics and other subjects at tinyurl.com/muyuj33k. The U.S. Securities and Exchange Commission, the federal regulator of the financial industry, also provides resources on its Investor.gov website. See Introduction to Investing (tinyurl.com/3fkbnker).

If you are thinking about becoming an investor, send me questions I can answer in this column (readers@juliejason.com).

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Are your retirement savings on track?

Reports vary. The Federal Reserve's Economic Well-Being of U.S. Households in 2023 report (tinyurl.com/4zy7m6k5), released in May 2024, indicated that only 34% of non-retirees said their retirement savings were on track. Another 19% said they were not sure. Those results are not reassuring.

On the other hand, the 2024 Retirement Confidence Survey, conducted by the Employee Benefit Research Institute and Greenwald Research, reported that 68% of 1,255 workers were "very or somewhat confident" they would have enough money for retirement. The workers (along with 1,266 retirees) were surveyed in January 2024 (tinyurl.com/54dyy6an).

A common concern reflected in these and other surveys? Inflation.

"[I]nflation remains a top reason for Americans' lack of confidence," the 2024 Retirement Confidence Survey stated. "Among those who do not feel confident, 31% of workers and 40% of retirees cite inflation as the reason why."

In addition, 78% of workers said inflation would stay high for at least the next 12 months (down from 86% answering the same question in the 2023 survey).

Thirty-five percent of those in the Federal Reserve survey self-reported inflation as being the main financial challenge, which was similar to 2022 (33%). In both years, "inflation" finished ahead of any other challenge.

Similar concerns have emerged elsewhere. A recent survey of 2,392 adults in early May by CNET Money, a digital media publication, found that 93% of adults are concerned about inflation (tinyurl.com/4xnzz38p).

Asked about the financial goals that have been postponed by those in the CNET survey, 38% said saving for long-term goals, and 24% said investing for long-term goals such as retirement or property.

There also is this: 63% of respondents said they worried more about running out of money than they did death, according to an Allianz Life Insurance Company of North America survey in February and March of 2024 of 1,000 individuals 25 and older (tinyurl.com/2s39akkr). The most common concern related to the worry about running out of money? High inflation, at 43%.

It's important to keep in mind that the Consumer Price Index, a measure of inflation, increased 6.5% between December 2021 and December 2022 (tinyurl.com/2n8u2nmh). However, the increase was only 3.3% from May 2023 to May 2024 -- the most recent report issued by the U.S. Bureau of Labor Statistics (tinyurl.com/bdch46a4). Yet despite the improving numbers, survey respondents still view inflation as a concern.

Another explanation for the concern? "Despite multiple indicators of improving economic conditions, the idea of a 'vibecession' -- which is defined as 'a period of widespread pessimism about the economy regardless of the actual economic situation' -- seemed to persist across the U.S. workforce," was cited in Fidelity Investments' "Building Financial Futures" (tinyurl.com/mr42tw5s).

The report also noted that "the percentage of Fidelity customers who felt optimistic about their finances, their health, and their work at the end of 2023 increased by double-digits from the end of 2022." However, "anxiety about the economy continued among Fidelity customers, with 75% indicating that they are stressed about higher prices and the increasing cost of living."

How do you view inflation these days? Do you feel that your saving for retirement is on track? No matter where you stand, consider how these Allianz Life survey responders are addressing their concerns about running out of money:

-- Increase retirement savings (41%)

-- Reduce current spending and save more (38%)

-- Put portion of retirement savings in a product that provides lifetime income payment (35%)

-- Work longer and retire later (35%)

All good suggestions. Consider whether these are realistic and practical options for you if you would like to improve your retirement preparedness. And let me know if you would like to talk more about this subject. Write to me (readers@juliejason.com) with questions I can answer in this column.

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