Generation X, born between 1965 and 1980,1 is often labeled “the Slacker Generation,” a cynical and forgotten middle child between the larger boomer and millennial generations who wants to just get on with things with as little interference as possible.
But while Gen X may come across as apathetic, when it comes to retirement, their financial planning concerns are getting supercharged as they balance current and future financial needs, a dwindling time frame, and the fear that there may be no safety net for them when they retire.
If you’re a member of Gen X, it’s not too late to get on track toward retirement
Preparing under pressure
As the oldest Gen Xers get closer to retirement, many are feeling the pressure to maximize their savings. Although they’re at the peak of their earning years, they may be feeling the squeeze of multiple responsibilities, including caregiving and family expenses. And together with uncertainties like the economy, the job market and health care costs, consider these additional financial stresses Gen X is under:
- They have less saved for retirement than boomers did at the same stage. One study found a typical Gen Xer has only $40K in retirement savings on average.2
- The majority of Gen X will not be able to count on guaranteed pensions as earlier generations did—and only about 55% participate in employer-sponsored retirement plans.2
- Over 60% of Gen Xers do not have a retirement plan in place.3
- Gen X carries the highest average debt among adult generations.3
Fortunately, if you’re a member of Gen X, it’s not too late to get on track toward retirement. Here are some steps you can take:
- Learn the facts: Educate yourself about market cycles, interest rates and inflation, and what to do about them.
- Find ways to boost your savings: Concerned about how long your retirement savings will last? Work on maxing out or making catch-up contributions to your employer-sponsored retirement plans and IRAs.
- Consider solutions that can promote growth and protection: Products like registered index-linked annuities (RILAs) can offer flexibility to take advantage of potential market gains, while providing some protection during downturns.
- Talk to a financial professional: Put that cynicism on hold and find a professional you can trust to help you make informed and confident decisions about your retirement.
There’s no time like now
As a member of Gen X, you may feel less prepared for retirement than previous generations, but you still have opportunities to maximize your savings before you need to tap into it. Now is the time to put the “slacker” label on hold and get serious about your future!
