Richard Eisenberg has an interesting viewpoint on how generation x (the generation born after the Western Post–World War II baby boom – dates ranging from the early 1960s to the early 1980s) is handling their retirement planning. I think it is worth a read.
I often write about the retirement preparedness (or lack thereof) of boomers — my peeps and the prime Next Avenue demo.
But how well is the generation right behind them — Gen X — doing on that score?
“They’re on a retirement collision course,” according to Catherine Collinson, president of the Transamerica Center for Retirement Studies (TCRS), which just published a survey of the 36- to 49-year-olds (as TCRS defines the group; there’s no universal agreement).
“Gen X is, frankly, at risk and they’ve been overshadowed in the headlines by boomers and Millennials,” notes Collinson. Some call Gen X “the neglected middle child.”
(MORE: Don’t Call Me Slacker)
Retirement Reality Bites
Here’s the problem: The online survey, Generation X Workers: Retirement Reality Bites Unless Answers Are Implemented, found that even though Gen X’ers started saving for retirement at age 27, they only have $70,000 (median figure) in their retirement accounts. And, the survey said, they expect they’ll need to save $1 million for retirement. About a third of Gen X workers surveyed (31%) believe they’ll need to save $2 million or more.
“Do the math,” says Collinson.
Oh, and did I mention that Gen X’ers will start turning 67 (the Full Retirement Age for Social Security benefits) one year before the Social Security trust fund is projected to run out of money? Little wonder that 83% of those surveyed are concerned that Social Security won’t be there when they’re ready to retire.
Dealt a Bad Hand