Generation X, those born between 1965 and 1980, are approaching retirement, but recent data from Fidelity shows the average Gen Fidelity reports that the average retirement savings for Gen X as of Q2 2024 is just $182,100.
While this may seem like a lot of money to some, it’s nothing compared to what you need to retire safely. Fidelity recommends that by the time someone reaches retirement age, they have at least 10 times their salary saved for retirement. So earning $70,000 a year means you’ll have $700,000 left in your retirement account by the time you quit your job.
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Those in their late 40s to mid-50s have a lot to catch up on. Fidelity recommends that people in this age group should already be saving about six times their annual income for retirement. Sticking with the $70,000 salary example, you’d end up with $420,000 left in your retirement account, a far cry from the average of $182,100.
Gen Xers experience several financial setbacks during their prime working years. From the dot-com bubble to the 2008 financial crisis to the COVID-19 pandemic, many disruptions have affected the ability to save.
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Many Gen Xers are also facing layoffs and reduced incomes during times of crisis. The stock market fluctuates significantly from year to year, making it difficult to continue making retirement payments.
Beyond external economic factors, Gen Xers (the sandwich generation) are often caught between caring for children and aging parents. Those in this dual caregiver role face emotional and financial burdens, from increased medical costs for aging parents to child support costs.
This often results in delayed or reduced retirement contributions to cover immediate family needs.
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Another financial hurdle for Gen Xers is personal debt. Education Data reports that the average student loan debt for Gen X is $44,290 per borrower, and Gen Xers take out more student loans than any other generation. According to Experian, Gen Xers have the highest average credit card debt of any generation, at $9,255. Between paying off these personal debts and managing other financial responsibilities, saving for retirement often takes a back seat.
However, for those whose retirement savings are less than ideal, it’s not too late to get back on track. Contributing more to your retirement account is a good place to start, especially if your employer offers matching contributions. It’s also important to prioritize paying off high-interest debt, so you have more money to put toward savings. Consulting with a financial planner can also be a smart move, as they can help you create a customized plan that balances your current needs with your long-term goals.
By taking action now, Gen Xers can increase their chances of securing a comfortable retirement. It may be helpful to consult a financial advisor. We can help you plan for the future with a personalized plan tailored to your needs.
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This article is an original article from Average Gen-Xer Only has $182,100 Retirement Savings And Its Not Enough To Secure Their Future.
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