Gen X and Retirement
Statistics show that the economy has improved. Personal income increased in every state except South Dakota. But while the economy surged forward, there’s still planning to be done for retirement.
Retirement is a big step in your life, and you need to be ready for it. Americans who fall into Generation X are worried about retiring. Research shows that they felt that they’d find it harder than other generations to retire comfortably, or even be able to retire at all.
As Gen X is the first generation to have access to 401(k) plans for most of their working lives, you’d think they'd be better prepared for their later years. But that’s not the case. Many of them are lagging in their savings.
It isn’t that Gen Xers aren’t saving. 77 percent are using either a company-sponsored plan or some other retirement plan. However, just 14 percent of them have a written retirement strategy, so they aren’t working smart. In essence, they’re just putting money away and hoping for the best.
They have not saved to a level that would give them peace of mind. The average amount saved is $66,000! That’s not nearly enough. So it’s no surprise to learn that only 14 percent of members of Generation X in America today are very confident they will be able to fully retire with a comfortable lifestyle.
A measly 16 percent of Gen Xers have a financial plan in their 2019 goals. If you compare that to their younger counterparts, they lag behind. 27 percent of Millennials are looking at setting up a proper plan for their future and their money. On top of not having a proper plan in place, many in the Gen X age group have higher credit card debt than most. In fact, Gen X collectively has higher credit card debt than any other age group, and they spend more on non-essential items than any other age group.
Americans between the ages of 35-44 have an overall debt load that’s the highest of any generation, which puts quite a damper on their retirement prospects.
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