Solution: 37% of Gen X say they won’t be able to afford to retire

Add Gen Xers to the long list of people who fear they won’t have a sizable enough nest egg to retire. Nearly four out of 10 (37%) of Generation X — those born between 1965 and the late 1970s — say they would like to stop working for good and “fully retire” someday, “but will not be able to afford to,” a new survey from TD Ameritrade, an online broker based in Omaha, found.

Other retirement findings:

  • 43% say “they are behind” in their savings.

  • Half (49%) are “worried about running out of money” once they leave the workforce.

  • Nearly two out of 10 (17%) say they “aren’t saving or investing for anything.”

  • Only a third expect to be “very secure” in retirement — vs. nearly half of Baby Boomers.

The savings shortfall has been exacerbated by the phasing out of traditional pensions funded by employers. [this fact has been loudly warned about for years by many financial educators….but everyone prefers to ignore the obvious until the pain hits close to home] In their place is the increasing reliance on RRSP’s, 401(k) plans, Tax Free Savings and IRAs that require workers to do most of the saving on their own. [when most people run their own numbers, the end of each month they run out of any significant amount to even add to a future saving]

Gen Xers aren’t alone in their financial angst. The finances of the younger Millennial generation have been hurt by the Great Recession in 2008-09 and high college costs. Older Boomers, according to the TD Ameritrade survey, are also uncertain about their preparedness, with just 47% saying they expect to be “very secure” in retirement. The oldest of the roughly 65 million Gen X Americans — those now 39 to 53 — will be the next generation to retire.

Lule Demmissie, managing director of retirement and investment at TD Ameritrade, says the Gen X savings deficit is due partly to a series of setbacks — but stresses it’s not too late to get back on track. [and their “on track” will involve more scrimping and saving into their institution as the solution...when a better life can be had by increasing cashflow with a side hustle click here]

Gen Xers were derailed by three market downturns — the 1987 stock market crash, the 2000 tech stock meltdown and the 2008 financial crisis. They also were the “first 401(k) generation,” which transferred the responsibility to fund retirement from employers to workers. This generation was also more likely to have grown up in a family split by divorce and as latch-key kids, two factors TD Ameritrade says lead to less financial security as adults. “They took a lot of hits,” Demmissie says.

Demmissie notes that Generation X, which started saving for retirement at 29, or five years earlier than Boomers, can reclaim their financial lives. “It’s easy to be cynical, but the important thing for Generation X is that all hope is not lost,” she says. “Improving their finances is still very much in their control.” Her advice: Control what you can control. Take advantage of your 401(k) [nice. but building a passive income stream is far more attractive a lifetsyle click here and will add value to your life in many ways..not the least of which is personal growth including financial intelligence to not always get duped by banking institutions 🙂 ]. Find out how the tax-code changes will impact you [start a side hustle NOW, maximize your home business tax credits all your working years (.which will be thousands of dollars in legitimate money to you), and have a side stream of passive income ready to go for an awesome retirement.] And don’t expect to build your nest egg to $1 million overnight. [you won’t need to…just saying]

“Break down your financial goals into manageable milestones,” she says, such as picking a year you would like to retire and figure out how much you need to save each month to get there. The TD Ameritrade survey included 828 Gen Xers and 990 Baby Boomers.

If you want to talk about starting a side hustle, contact me here

Brenda Cook.


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