The road to retirement savings has been a bumpy ride for Generation X. They are the first generation responsible for paying back massive student loan debt while also trying to save for retirement and their children’s education. Gen X is known for being
independent, resourceful and self-sufficient — but they are also very worried when it comes to their financial security.
Gen X is the generation most worried about their retirement future, by far, according to Scottrade’s 2016 American Investor Report. Only about 1 in 5 Gen Xers (19 percent) are extremely confident they will be able to pay for retirement, compared to 31 percent of baby boomers and 48 percent of millennials.*
Gen Xers worry that negative events could derail their plans to retire. Nearly half (44 percent) of Gen Xers said a job loss
would delay their retirement plans. More than half (56 percent) plan to work in retirement to supplement their income.*
Smart moves to make now
Retirement is getting closer for Gen Xers, but there’s still time to get on the right track. If you’re feeling unprepared or unsure about retirement, these tips can help:
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Make retirement a financial priority
This can be tough, especially if you’re juggling multiple financial obligations to pay for children’s education expenses, your own student loans, a mortgage, etc. You might downsize your home or vacations in order to make retirement a higher priority.
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Take every opportunity to save.
When you contribute to an employer retirement plan or individual retirement account (IRA), you take advantage of tax-deferred savings, which helps your money grow faster. Some employers offer matching contributions to your 401(k) or 403(b) — this is free money you don’t want to miss! And if you’re age 50 or older, you may be eligible to make an annual catch-up contribution, too.
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Increase your savings rate.
If you’ve been contributing money to your employer retirement plan with every paycheck, that’s great! But it’s time to bump it up if you’ve had some gaps in savings, or haven’t increased your savings rate in the past decade. You may also want to open an individual retirement account (IRA) to save more for retirement.
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Build your safety net.
Having a financial safety net for unexpected expenses or a job loss can help you get through challenging times, and also keep you from draining your retirement accounts to cover expenses in a pinch.
Meet with a professional
A Osaic Institutions professional located at Macatawa Bank can review your financial situation, estimate how much you need to save and work with you to create a plan. Call for an appointment at (616) 394-5180