Will Generation X Be Ready For Retirement?
So much attention seems to be focused on the Boomers and Millennials, and the financial needs of Generation X (people born approximately between 1965 and 1980) is neglected. This generation also tends to be skeptical of the markets and financial advisors.
Generation Xers are usually more cautious about the markets since they went through not one, not two, but now three significant market downturns – the tech bubble, great recession, and COVID-19 crisis. As a result, the average Gen X household has saved less for retirement than the Boomers at the same age. Many Gen Xers may be surprised to learn that while it was a rocky time period the last twenty years, the S&P 500 earned about 9% per year. Investors who were disciplined and stayed invested the last twenty years are much better off than their peers who did not invest due to fears of market volatility.
According to the Employee Benefit Research Institute 2019 Retirement Confidence Survey, two-thirds of Generation X workers believe they have enough money to live comfortably in retirement. Yet, only 40% have ever spent time figuring out how much they will need for retirement. Many studies show this generation does not trust financial advisors and avoid hiring them for support. This attitude may have been to their detriment since studies also show people with a plan and financial advice accumulate more wealth than those without.
If you are from Generation X, it is not too late to get ready for retirement. Our firm focuses on the unique financial needs of this neglected generation. Schedule an initial consultation to learn more about how we can help.