This is How Gen Xers Can Refocus on Successful Retirement
Issues Peculiar to Gen Xers
People belonging to Generation X, i.e., those born 1965-1978, are currently encountering specific challenges which baby boomers who belong to the generation before them, and millennials who belong to the generation after them are not facing.
Transamerica Center for Retirement Studies recently released a survey that revealed that members of Generation X have a higher likelihood than millennials and baby boomers to conclude that they may never recover or have not yet begun to recover from the Great Recession. In addition to this, the Generation Xers have to focus on their careers while also providing financial support for their aging parents. As such, several Generation Xers are lagging behind in saving for their retirement.
Another survey conducted by Personal Capital indicated that over one-third i.e., 34%, of Gen Xers, do not have any retirement saving whatsoever. However, it was suggested that as the youngest member of this generation will be nearing the age of 40 while the oldest would be in the early 50s, they still have considerable time to make things right.
The president of the Transamerica Institute and Transamerica Center of Retirement Studies, Catherine Collinson, has, however, opined that they need to begin taking actions immediately. Collinson added that there was still time for them to build up plans, have more savings and edge closer to being financially secure when they retire. She, however, reiterated that time wasn’t particularly on their sides and the sooner they got into action, the better things are likely to become eventually.
Refocusing on Retirement Savings
Some of the suggestions by experts to help Generation Xers get ahead with their retirement savings include:
Creating a plan
The first step in doing this for most members of this generation is to determine their current financial position. The survey conducted by Personal Capital found that while a good number of the Gen Xers realize the importance of having a financial plan in achieving financial security upon retirement, many of them still have no idea what their net worth is. Michelle Brownstein, Personal Capital’s vice president of private client services, on their lack of net worth knowledge stated that it becomes difficult to get to your destination if you do not know where you are at the moment.
Brownstein thus advised that it is essential Xers start by determining their net worth and subsequently examining their budget. He suggested that Gen Xers should begin by listing out all their assets and debts and subsequently highlight how much money is flowing in and how much is being expended. If there is an imbalance, he advised that how they spend their money needs to be adjusted. For instance, they should consider eating at home rather than dining out and staying away from expensive vacations. Brownstein reiterated that there are a lot of changes that could be made and would make a whole lot of difference in the long run.
Matthew Gaffey commenting on how they can cut costs also suggests that they should put into consideration the cutting down of their memberships of gyms or any other club. He also advised them to cut down on their subscription to premium cable channels or magazines. Gaffey expressed that cutting down those costs could increase how much they have in their emergency fund which ought to ideally cover for their expenses for at least six months.
Re-examining Retirement Goals
Once you have worked on your budget, the next thing is to reassess plans for retirement. According to Brownstein, you can begin by determining the exact amount you will need upon retirement and making your plans based on that. If for instance, you realize that you need $1 million upon retirement to fund your lifestyle, you have to determine how much you need to put away annually to reach that amount. If you realize that you are behind on the savings or you’ve not even started, then you should be ready to make definite adjustments.
Brownstein chipped it in that one could have to make certain trade-off and he added that such have to be made as soon as possible because the longer the wait, the bigger the trade-offs would likely become.
He also stated that it could also mean changing locations, having a spouse who isn’t currently working get back into the workforce or even cutting down on the help offered with children’s college funding.
More in Retirement
This Is What You Need to Know About Annuity Before Retiring
Experts have noticed how people are starting to buy annuities again. It wasn’t long ago when there was a decline on...June 22, 2019
Snapchat Stock in Trouble as More Executives Leave the Company
Snapchat’s stock has been a trainwreck this year and investors are losing patience with CEO Even Spiegel and his “dictatorial management...June 22, 2019
Adidas Once Turned Down Michael Jordan, But He Came Back As their Biggest Competitor
Have you any doubt that Michael Jordan has the financial freedom everyone craves for? Given that his name always pops up...June 22, 2019
Another Economic Crisis Could Be on the Horizon, But Where Will it Start?
The banking system has learned some hard lessons from the 2008 financial crisis which shook the global economy to its core....June 22, 2019
Common Red Flags for Investment Frauds That You Need to Watch out For
Investing is like somewhat like gambling. Where’s the fun without a little bit of risk? But it isn’t always easy to...June 22, 2019
How Rich Would You Be Today Had You Invested $1000 in Netflix in 2007?
Streaming platforms have recently gained a lot of traction, with the demand for online content being ever on the rise. Netflix...June 22, 2019
This Is How Tech Helped the Stocks During the Bull Market
A few months ago, it was predicted that the bull market was upon us. It turns out that it finally happened...June 22, 2019
Nicki Minaj’s Jaw-Dropping Net Worth and How She Makes Her Millions
Onika Tanya Maraj, better known to fans and critics as Nicki Minaj, is a queen in her own right. Without a...June 22, 2019
Don’t Skip the Gym! Here’s What Happens to Your Body If You Stop Exercising
Have you ever considered what happens to your body when you skip exercising for three days? You may have been going...June 22, 2019