Yahoo Finance Gen Xers, The 'Jan Brady' Of Generations, Say It'll Take A Miracle To Retire Comfortably — But They're Still Surprisingly Optimistic
The oldest members of Generation X are reaching a significant milestone this month: They are turning 59 and a half, the earliest age at which they can begin withdrawing retirement funds without penalties. However, a recent study by Natixis reveals that many Gen Xers feel unprepared for retirement. Almost half believe it would take a "miracle" for them to retire comfortably.
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Generation X, comprising those born between 1965 and 1980, is unique in its reliance on 401(k) plans. This shift started in the 1980s as employers moved away from traditional pensions. This self-directed retirement saving method requires individuals to manage their savings and investments.
According to Natixis, the average Gen X household has about $150,000 saved for retirement, far short of the $1.5 million many Americans believe is necessary. Dave Goodsell, executive director of the Natixis Center for Investor Insight, describes Gen X as "the Jan Brady of generations," often overlooked compared to baby boomers and millennials. "They were the kids left alone after school, and they are kind of on their own in retirement too," Goodsell remarked.
The study also found that about 20% of Gen Xers worry they won't be able to retire even if they save $1 million, and around 25% fear they will need to return to work post-retirement due to insufficient funds. A separate report by the National Institute on Retirement Security earlier this year highlighted that the typical Gen X household with a private retirement plan has only $40,000 saved, with 40% having no retirement savings at all.
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A recent survey by Clever Real Estate adds to the troubling picture. Polling 1,000 Gen Xers, it found that 56% have less than $100,000 saved for retirement. Sadly, 64% of respondents indicated they stopped saving for retirement because they simply can't afford to, citing poor economic conditions and student debt as major obstacles.
A Reddit thread highlights the financial struggles the generation faces firsthand. The post, titled "A Generation Rolls Its Eyes at Retirement aka Gen X Is Unprepared for Retirement, But Do They Care?," sparked a wave of responses. One user, BookerTree, voiced a common sentiment, stating, "Oh I f*ckin' care. I just don't have the capacity to do anything about it."
Another user, Zorgsmom, expanded on this sentiment, saying, "I've been working my a*s off for 30 years already. I've lived through three major recessions, all of which made big hits to my 401(k)."
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The discussion includes mentions of driving old cars, struggling to maintain homes, and wearing out-of-date clothes, painting a vivid picture of the financial pressures Gen X faces. One user even joked about committing a crime, asking, "Am I supposed to rob a bank?" This thread encapsulates the desperation and humor with which Gen Xers approach their retirement woes.
Despite these challenges, Gen Xers remain optimistic about their retirement dreams. According to the Natixis survey findings, they plan to retire at 60 and expect their retirement to last about 20 years.
Unfortunately, without adequate savings, maintaining their standard of living and covering essential expenses like health care and housing will be challenging. Many will need to rely on government programs like Social Security and Medicare.
Consulting with a financial advisor is one way to ensure you're on track and prepared for your retirement — regardless of your generation. It's never too early or too late for professional planning.
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