Retirement preparation is personal. What worked for your parents may not work for you, just as what works for you may not work for future generations. Exploring these differences can shed fascinating light on how economic, occupational, and personal forces help shape our retirement strategies.
Of the generations surveyed, Baby Boomers have the highest reported total household retirement savings at $147,000 (estimated median). Boomers are rewriting retirement rules by identifying opportunities to work longer into retirement to enhance their retirement savings shortfalls. Plus, Boomers are paving the way for future generations by challenging employers to accommodate a flexible transition into retirement.
Generation X: 39 to 52 years old
The reported total household retirement savings for Gen X workers is $69,000 (estimated median). Unfortunately, 30% have taken a loan or early withdrawal from their retirement plan to pay off debt or major expenses. While only 12% are very confident they’ll be able to fully retire with a comfortable lifestyle, there’s still time to catch up on their retirement savings if they commit to saving more.
Millennials: 22 to 38 years old
Of Millennials surveyed, the reported total household retirement savings is $31,000 (estimated median). Of the Millennial workers offered a 401(k) through their employer, 72% participate and contribute an average of 7% of their annual pay. Millennials have acknowledged their need to learn more about investing. Of those surveyed, 75% say they would like more information and advice from their employers on how to achieve their financial goals.
In summary, retirement is personal. The unique financial and physical challenges facing each generation are varied. What considerations are important to your retirement planning strategy? Do any unique challenges apply to your generation specifically? Share your thoughts below.