![]() The book offers advice, tips and financial management lessons geared towards helping the reader highlight strengths, identify missteps and take control of their finances. Jennifer is also the author of Thrive!.Affordably: Your Month to Month Guide to living your Best Life without breaking the bank. She started her career covering personal finance at Black Enterprise Magazine, went on to CNBC where she covered personal finance, women and money and tech and then Forbes, where she reported on personal finance, business, tech and money matters related to the economy, investing, credit and entrepreneurship. Jennifer is a Senior Personal Finance Reporter and Spokesperson for the Personal Finance vertical at Business Insider. As the National Institute on Retirement Security report emphasizes, shoring up government resources like Social Security benefits could play a significant role in helping Gen X prepare for the golden years. With the pandemic, the disappearance of defined benefit plans, inflation, and wage stagnation, Gen X has faced more than its fair share of obstacles as it prepares for retirement. Plus, more state-facilitated retirement savings programs are being established.Īll of these actions create new savings opportunities for more workers, especially those without employer-sponsored retirement plans. Reforms to the federal Saver's Credit will soon turn it into a refundable Saver's Match to the benefit of low-income retirement savers. While Gen X is saving more, legislation could also help with playing catch-up. ![]() Retirement savings have slowly increased for Gen X, and many members of this generation are currently in their peak earning years - meaning there's more money to save towards retirement. Slammed with the Great Recession in the early 2000s, student loans, and high personal debt, Gen X has started playing catch-up with retirement savings later in life. ![]() Gen Xers have faced the headwinds of inflation, student loans, and debt, so it's no wonder their retirement savings have not kept up. This meant that there was no longer a guaranteed benefit amount from the employer upon retirement retirement savings became solely the responsibility of the employee. Gen X is also the generation that experienced the shift from Defined Benefit Plans (pensions) to Defined Contribution Plans in the private sector. Generation X is painfully aware of its savings shortfall, and there are several reasons why it's fallen behind.įor one, while Gen Xers have earned college degrees at a high rate, this has also left them with large amounts of student loan debt. Why is Gen X behind on retirement savings? The amount you should have saved for retirement increases with age, and according to Fidelity Investments, you should have five times your income saved by age 50, in addition to having an emergency fund. Moreover, the typical Gen X household only has $40,000 in retirement plans in private accounts. But certain groups are particularly hard hit for instance, only about a third (35%) of Hispanic Gen Xers participate in an employer-sponsored retirement savings plan such as a 401(k), compared to 55% of Gen Xers as a whole. Most Gen Xers are failing to meet retirement savings targets regardless of race, gender, marital status, or income. But many of them haven't saved enough for retirement. The oldest Gen Xers turn 58 this year - only a few years away from retirement and claiming Social Security benefits. But, as illustrated by a report from the National Institute on Retirement Security, many Gen Xers are less prepared for retirement than both older Baby Boomers and younger millennials. The oldest members of Generation X, defined as those born between 19, will be retiring from the workforce in the coming years. ![]() But making this a reality requires planning and targeted financial management. Retirement should be the time of life where you can sit back and enjoy the fruits of your labor.
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