Addressing Retirement for Gen X
- May 30, 2023
- Retirement Planning
A recent study by Investopedia found that Generation X’s biggest worry is retirement. The survey found that although many members of Gen X feel like they understand their finances, they are still concerned about setting themselves up to transition into retirement. Nearly one in four Gen Xers are not sure when, or even if, they will be able to retire.[1]
These numbers are very significant. They mean that even if Gen X feels like they know what they need to do, they aren’t sure how they will get there. You may be feeling the same way yourself, so don’t worry; you’re not alone!
Most members of Gen X expect to support themselves by utilizing Social Security and/or 401(k) plans, but there is a concern that Social Security may not cover as much as was promised by the time retirement is a reality. Some Gen Xers are concerned if they hit a road bump in their retirement savings journey, there won’t be the same safety net that previous generations received from Social Security.[2]
Overall, retirement is all about finding consistent ways to minimize and cover your expenses, and to replace that paycheck. Even if you are careful with your finances, you may still feel like you have not saved enough to stop working. So, what can you do? How do you know if you have enough?
First, try to budget as accurately as you can for what you think your expenses will be. This can at least give you a sense of how much you’ll need month to month, and it provides you something to compare to your savings.
Next, there are options out there that can provide you with the stable income needed to achieve the retirement you’re working so hard to achieve.
Lastly, but importantly, talk to a financial advisor. Retirement is a huge topic with so many technical terms and surprising pitfalls that it can be helpful to have someone guide you through the process. You might be surprised to learn that retirement isn’t just about hitting a particular goal – there are plenty of ways to cover your expenses – it just depends on the right plan.
By talking with a financial advisor, you may find that you’re more prepared than you thought for retirement, or you may walk away with a plan for how to improve your situation. If you’re a member of Gen X and you’re looking for a guide to your retirement, feel free to reach out to us and schedule a complimentary review of your financial situation.
