Gen X in Retirement
When it comes to retirement planning, GEN X lives up to its reputation; one where the middle child – sandwiched between the Baby Boomers and the Millennials – feels indifferent to it. Despite feelings of indifference, GEN X feels secure in themselves, even rating their mental health as “excellent”. According to Principal Financial’s June 2022 Retirement Security Survey, that’s ten percentage points higher than other generations. With that said, GEN X still needs support planning for the future.
Even with their confidence, GEN X carries more debt than other generations. Debt and emergency funds can be something of a catch-22, you have a hard time establishing an emergency fund (which helps future debt) if you’re in debt already. Debt can have quite a hangover effect.
While GEN X faces a lot of challenges, they seek help, but independently (just like a latch-key kid would). They lead the pack for engaging in financial wellness programs, but lag Boomers significantly in working with a financial professional. Compared to other generations, GEN X may be less likely to raise their hands with questions, but they still need help. From managing debt, contributing to college costs, and helping support aging parents, this generation can’t always go at it alone.
As GEN X becomes the country’s next generation on deck to retire, many of those born between 1965 and 1980 are unprepared for retirement. When looking at the median retirement savings levels for GEN X, the bottom half of earners has only a few thousand dollars saved for retirement and the typical household only has $40,000 in retirement savings according to the study from the National Institute on Retirement Security.
Is it too late to start saving? No! If GEN Xers start saving now, they can make up for lost time. Most GEN Xers are in their peak earning years and youngest GEN Xers have two decades to work with. MCF is here to help! Reach out to your Plan’s dedicated financial advisor to help figure out how to reach your retirement savings goals, today!
Source: Principal GEN X and retirement – the ‘sandwich’ generation soldiers on.
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