Often referred to as “the forgotten generation” or, more truthfully, not referred to at all, Gen X is between Baby Boomers and Millennials.
We often use the mid-1960s as its starting birth year and the late 1970s as its ending birth year, with the generation being generally defined as people born between 1965 and 1980.
That means that if we go by the stereotypical age of 65 for retirement, many Gen X’ers are starting to think about retirement.
Or, as a new study by Bloomberg shows, accepting that retirement may not be in the cards for them.
Gen X Plans To Work Longer
Only (43%) of Gen X Americans said they can afford to retire at age 65, and for those without a 401(k), (26%) said they don’t expect to retire at all.
(73%) of employed Gen Xers said they anticipate working longer to afford retirement, while (38%) believe they’ll likely have to work their entire lives.
Especially as (58%) of Gen X believe their retirement plans couldn’t withstand another global crisis.
Gen X also has very little confidence that they will receive social security or that it will backstop their lifestyles.
A whopping 76% say that politicians have no ideas on how to fix social security.
Gen X entered the job market during the shift to employer-provided, but largely employee-funded, 401(k)-type investment accounts.
Now, the tradeoff between the freedom to make one’s own investment choices versus the risk of a retirement shortfall is coming into sharp relief.
“Generation X is undoubtedly the most stressed-out generation about retirement,” said David Blanchett, head of retirement research for PGIM DC Solutions.
“The way we plan for retirement is structurally changing, with more personal responsibility, and Gen X was the first generation to deal with that independently.”
If you are a Gen Xer facing retirement and feeling scared or nervous, it might be time to contact a financial advisor.
Michelle Francis, a Financial Planner with Life Story Financial, says big life events are a good time to consult a financial advisor. “It’s helpful to talk to a financial planner when experiencing a big life change, like getting married, having children, starting a new job or career, or wanting to retire.”
She also says a planner can help you if you are stuck or overwhelmed, “It might be time to get some help if you’re feeling stuck about taking action in your financial life. Some less obvious examples include not being on the same page with a spouse about your finances; avoiding making an important financial decision, becoming overwhelmed about the different options; or not fully understanding an employer’s benefits package and what’s being offered for retirement savings, stock compensation or insurance coverage. ”
Read More:
- Plan To Retire Within the Year? Use This Retirement Checklist
- 15 Things To Keep In Mind if Retirement Is on the Horizon
- 12 Best Coupon Apps To Help You Save Money
