What Gen X Can Do to Save Their Retirement

What Gen X Can Do to Save Their Retirement

Posted On July 25, 2023 10:50 am

Arecent report highlights that many Gen Xers’ retirement savings are woefully short of what they will need to be income secure for their retirement years.

Let’s look at the problem and some steps they can take to not reach their retirement years with worries about making ends meet.

This month, the National Institute on Retirement Security published a report titled: “The Forgotten Generation: Generation X Approaches Retirement,” focusing on the 64 million Americans born between 1965 (age 58) and 1980 (age 43).

Generation X was the first group to enter the workforce as employers dropped defined benefit pension plans and replaced them with contributory 401k plans. While defined benefit plans provided a predictable level of retirement income, 401k plan outcomes are subject to how much employees contribute and the swings of the financial markets.

The report included both individual averages and household numbers; I’m choosing to focus on the household savings results.

The report shows the average Gen X worker has retirement savings of about $130,000. However, the median amount is just $10,000. This means half of Gen X workers have less than…

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