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Is Generation X Ready to Retire?

MulletMoney23

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Born between 1968 and 1978 and raised with VCRs and MTV, Generation X might be known as the neglected middle child of demographics right now.

 

Caught between Millennials and Baby Boomers, Gen Xers are in their proverbial sandwich years. We know it can be a delicate balancing act of work, raising kids, and possibly caring for aging parents.

 

At the end of the day, what about Generation X and their financial well-being?

 

According to the 17th Annual Transamerica Retirement Survey, 83% of Generation X workers believe they’ll have a harder time achieving financial security than their parents’ generation.

 

If you’re part of Generation X, now is a crucial time to get back on the savings track in preparation for future retirement.

 

Three things that can help you get started:

  1. Take a hard look at where you stand right now – and calculate how much you’ll still need to save before retirement. Consider reaching out to a financial professional if help is needed.
  2. Find ways to save more in your 401(k) or other employer-sponsored plans. Alternatively consider saving outside of work retirement plans. As you turn 50, you are also able to save more through catch-up contributions.
  3. Keep your job skills up to date – which can increase earning power and marketability in today’s environment.

 

A few final words

As a Generation Xer, you may still have at least 10 more years to save and prepare for retirement. But don’t procrastinate. The longer you wait, the less time there is to plan and save. If this seems overwhelming, or a helping hand is needed, consider reaching out to a financial professional. You still have time on your side and are encouraged to use that time wisely – even as you juggle daily realities – to secure a healthy retirement.

 

Share your questions or concerns with this community about retirement or finding a reputable financial advisor in your neighborhood on our Savings/ Retirement board.

 

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5 Comments
TraceyK

Small changes each year can make a difference!  I've gradually increased my 401K by 1% each year for three years.  I am also increasing my Roth contributions by $100 more a month.  These little change will make a significant impact to my retirement in 20 years. 

 

As a true Gen Xer as I am doing all of this while taking an active role in my parents' health and well being, managing my children still living at home, getting ready to send one off to college and being a new grandma.  My retirement is important so I have made decisions that help me reach those goals. 

 

My advice - take small steps.  For me it was eliminiating the frequent stops for my Caramel Macciotto, reduing the amount of times we order in and being more diligent about what I spend my money on.   These little changes have added up and are aligning me to toward retirement!

 

 

Community Manager

Love your active approach you're taking to your retirement plan @TraceyK. I agree with your that it's important to take small steps to make it easier to digest. When you speak to a financial professional OR begin wandering down internet alley when researching on your own it's easy to get overwhelmed with how much there is to do (and to save) for retirement.  Sometimes it can feel like you can't even focus on it right now, but even the smallest steps will have a large impact 5, 10, or even 20 years down the road. 

 

I think your ideas are wonderful for increasing your 401K / Roth gradually, I am going to adopt them myself!

psplawn

I'm a baby boomer and have adult children, I encourage everyone to particiapte in a 401K plan.  Especailly when your company matches.  That's free money people!  It may feel like you're paycheck will be less, but you're actually saving money in taxes.  I don't know about you but Uncle Sam gets enough of my money so any advantage to participate in a pre-tax savings program is a benefit to you.    Most allow the flexibility to borrow, tax free also, and you pay yourself back, low interest.

Tapdanceterri

I'm a baby boomer and have adult children too. If you are a parent it is time to explain to you children what compounded interest is. It only takes a moment. The turtle vs. the hare always wins the race.

Community Manager

It would be amazing if those conversations took place more often @Tapdanceterri !

 

Is it just me or is money something we learn almost nothing about until we open our first checking account and even then it's mostly about how to balance the checkbook (showing my age here!). I really believe as a whole providing more education around the basics would lead to better starts, earlier, on building financial fitness!