Why retirement planning is so important for Gen X

Generation X includes the people born between 1965 and the early 1980s, sandwiched between the massive baby boomer and millennial generations. We’re often overlooked and disregarded by financial services marketers and media because we’re not as big of an audience as the generations ahead of and behind us.

Gen X retirement realities:

• Most of us won’t have pension income and will have to rely more on our own savings
• Normal retirement age for Social Security will edge up to 67 by the time we retire.
• It’s questionable whether we’ll be able to count on Social Security for retirement income at all.
• We’ll probably work later in life and rely more on our savings than any prior generation.

In January 2018 USA Today published results of a survey conducted by TD Ameritrade that show Gen Xers have some work to do if they want to be able to retire.

• 37% say they would like to fully retire but will not be able to afford to
• 43% say “they are behind” in their savings
• 49% are “worried about running out of money” once they leave the workforce
• 17% say they aren’t saving or investing for anything
• Only a third expect to be “very secure” in retirement — vs. nearly half of Baby Boomers

The savings shortfall has been exacerbated by the phasing out of traditional pensions funded by employers. In their place is the increasing reliance on 401(k) plans and IRAs that require workers to do most of the saving on their own.

Source: USA Today, January 10, 2018 | Full story: Retirement crisis: 37% of Gen X say they won’t be able to afford to retire

Now is the time to accept the reality of the situation we live in and do something about it.

Action step

Follow this blog and check out more post to learn what actions you can take to begin to improve your prospects for a better retirement.

Start out by checking out some of these helpful posts:

• It’s time to dream about retirement
• How a 401(k) or 403(b) loan can wreck your retirement plan
• Why consolidating may be the best way to diversify
• The smartest (free) estate planning move you can make right now

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