A recent article over at Yahoo Finance asked if Generation X will ever be able to retire given the current state of the economy. First let me share a few interesting statistics I pulled from the article and then I’ll share my thoughts…
- Only 1/3 of Gen Xers are “very confident” that they’ll have enough money to live comfortably in retirement, cover medical expenses, and pay for their children’s education.
- Only 41 percent have even tried to calculate how much they need to save for retirement.
- Of that group less than half have saved more than $100,000.
- 82% believe the economy is going in the wrong direction.
- During the most recent recession, 15% made early withdrawals from their 401(k) plans and 23% stopped contributing to their retirement accounts.
These statistics paint a pretty grim future for Generation X, which consists of people born between 1965 and 1981. As a Gen Xer myself I can see where much of the skepticism comes from.
My generation was too young to take part in much of the stock market boom of the 80s and 90s, and just as we started to buy our own homes the real estate market imploded. The traditional pensions that our parents and grandparents enjoyed are all but extinct and Social Security is just a rumor that we may never see.
Speaking for myself, I’m not as far along as I’d like to be. I wish I would have started saving much earlier and there are a few financial decisions I would have made differently with the benefit of hindsight.
That said, I’m probably light years ahead of most of my generation. Too many of my friends have no real financial goals or plans at all. They seem to think the only way they’ll be able to retire is if they win the lottery. But hope is not a plan and if they don’t change their ways they’ll probably work until the day they die.
So my fellow Gen Xers…are you confident that you’ll be able to retire in style? What are you doing to ensure that you reach your financial goals?[Yahoo Finance – CNBC: Gen X Retirement]
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