Gen X Retirement Crisis Looms as Most Haven't Saved Nearly Enough

Gen Xers now in their 40s and 50s haven't saved enough for retirement compared to previous generations. The median retirement savings for Gen X households is only $40,000.
Income level hugely impacts retirement savings. The bottom 50% of Gen X earners have just a few thousand dollars saved.
Stark racial differences exist. Average retirement savings for Black and Hispanic workers are far lower than for White and Asian workers.
Experts recommend having 2-8x your income saved by retirement. Most Gen Xers aren't meeting these benchmarks.
New state and federal laws aim to help Gen Xers save more, like auto-IRA programs and easier 401(k) access for part-time workers. The enhanced Saver's Credit starting in 2027 may also provide help.

cnn.com

Relevant topic timeline:

8/20/2023

Gen Z and Millennials Need $3M–$5M To Retire: Report

Summary Gen Z and millennials need between $3 million and $5 million in retirement savings due to inflation. Facts - Gen Z and millennials need $3 million to $5 million for a comfortable retirement due to inflation. - More than 7 in 10 investors believe that $3 million to $5 million is the ideal retirement savings target. - The rise in inflation has led to a three- to five-fold increase in the recommended retirement savings target. - Managing towards an unknown future, including uncertain prices and lifespan, adds to retirement anxiety. - Bloomberg customers, who have high incomes and careers in finance, were surveyed for the study. - The US government debt will increase by $5.2 billion per day, adding to the need for increased savings for retirement.

8/20/2023

Gen Z and Millennials Need $3M–$5M To Retire: Report

Gen Z and millennials need to save between $3 million and $5 million due to inflation, which has led to a three- to five-fold increase in the recommended retirement savings target, according to a Bloomberg study.

8/21/2023

Americans Are More Afraid Of Going Broke Than Dying — Reports Indicate Financial Insecurity Is Becoming A Harsh Reality

A recent survey conducted by Allianz reveals that 61% of Americans are more afraid of depleting their savings during retirement than dying, highlighting the concern over outliving one's financial means in old age.

8/26/2023

My wife and I are 33, live in New York and earn $270,000. Can we retire at 55?

A couple in their 30s who both have high-paying jobs, a rental property, and are saving approximately $53,000 a year toward retirement can expect to have around $1.8 million respectively by the age of 55, suggesting they are saving enough and can continue their current lifestyle.

9/9/2023

Gen Z More Optimistic About Homeownership Than Millennials Despite High Prices

Gen Z is more optimistic about homeownership than millennials, with a lower percentage believing it will be impossible in their lifetime, and while both generations face barriers to homeownership such as high home costs and student loan debt, Gen Z is doing a better job of saving and has a slightly higher rate of homeownership compared to millennials and Gen X at their age.

9/27/2023

Retirement Worries Mount as Most Americans Lag in Savings

About 56% of American workers feel they are falling behind in saving for retirement, with older generations being the most concerned, and the average amount people believe they need to retire comfortably has increased to $1.8 million, according to a survey from YouGov for Bankrate and another survey from Charles Schwab.

10/2/2023

As Rates Rise, Millennials Squeezed by Mortgage Debt While Boomers' Wealth Grows

Millennials are being heavily impacted by higher interest rates, while baby boomers are benefitting from the increased rates by earning 5% on their savings, resulting in a significant wealth disparity between the two generations.

10/16/2023

4.6 Million Australians Lack Retirement Savings, With Women More At Risk

A survey found that 23% of Australians do not have enough saved for retirement, potentially leaving them financially unsupported in their senior years.

Topics

Posted 9/27/2023, 1:25:00 PM

Gen X Retirement Crisis Looms as Most Haven't Saved Nearly Enough

Gen Xers now in their 40s and 50s haven't saved enough for retirement compared to previous generations. The median retirement savings for Gen X households is only $40,000.
Income level hugely impacts retirement savings. The bottom 50% of Gen X earners have just a few thousand dollars saved.
Stark racial differences exist. Average retirement savings for Black and Hispanic workers are far lower than for White and Asian workers.
Experts recommend having 2-8x your income saved by retirement. Most Gen Xers aren't meeting these benchmarks.
New state and federal laws aim to help Gen Xers save more, like auto-IRA programs and easier 401(k) access for part-time workers. The enhanced Saver's Credit starting in 2027 may also provide help.

cnn.com

Relevant topic timeline:

8/20/2023

Gen Z and Millennials Need $3M–$5M To Retire: Report

8/20/2023

Gen Z and Millennials Need $3M–$5M To Retire: Report

8/21/2023

Americans Are More Afraid Of Going Broke Than Dying — Reports Indicate Financial Insecurity Is Becoming A Harsh Reality

8/26/2023

My wife and I are 33, live in New York and earn $270,000. Can we retire at 55?

9/9/2023

Gen Z More Optimistic About Homeownership Than Millennials Despite High Prices

9/27/2023

Retirement Worries Mount as Most Americans Lag in Savings

10/2/2023

As Rates Rise, Millennials Squeezed by Mortgage Debt While Boomers' Wealth Grows

10/16/2023

4.6 Million Australians Lack Retirement Savings, With Women More At Risk

A survey found that 23% of Australians do not have enough saved for retirement, potentially leaving them financially unsupported in their senior years.