7 Key Signs Gen X Has Enough Saved for Retirement
Written by
Heather Altamirano
Edited by
Daria Uhlig
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With Generation Xers now in their 40s and 50s, retirement is looming. However, a report from the National Institute on Retirement Security paints a bleak picture, suggesting that the golden years for Gen X could be “dismal.”
“The bottom half of earners have only a few thousand dollars saved for retirement, and the typical household has only $40,000 in retirement savings,” the report stated.
While many Gen Xers are facing a shortfall in their retirement savings, the silver lining is that they still have several years before leaving the workforce. This presents an opportunity to develop realistic plans, save as much as possible and make wise financial choices to significantly improve their futures.
Experts GOBankingRates spoke with discussed signs that Gen Xers are on track for retirement. These signs can help you evaluate your own situation and make any changes necessary to bolster your savings.
They Regularly Review Their Retirement Plan
Life changes, and so do plans.
“Regularly assessing and adjusting their retirement plan ensures they stay on course and adapt to changing circumstances,” said Shawn Plummer, financial advisor and CEO of The Annuity Expert. “This proactive approach prevents potential shortfalls. It also helps them capitalize on new investment opportunities.”
They Know How Much They Need To Retire
Being realistic about spending habits and lifestyle is important when figuring out a retirement plan, but so is being mindful of current situations. Knowing how much you’ll need for retirement is important, according to Eric Mangold, Certified Wealth Strategist and founder of Argosy Wealth Management.
“You can have retirement projections built that consider what you are saving, spending, inflation, taxes, etc. This will show you whether you are on the right track to a comfortable retirement.”
He added, “Don’t be shy to enlist a financial professional on this because not only do we build out those projections for our clients, but if they are not on the right track, we can hopefully recommend methods to get them on the right track.”
They Bought a Home at the Right Time
There are many ways to build wealth and grow your money over time, and owning a home is usually seen as a good investment, especially if you buy at the right time.
“If Gen Xers did happen to own a home, they are locked in at historically low interest rates and have seen noticeable equity pile up in their homes,” Matthew Murawski, Financial Planner with Goodstein Wealth Management, said,
They Maximize Employer Retirement Contributions
“Taking full advantage of employer matches in retirement accounts shows they’re leveraging available resources,” Plummer stated. “This practice effectively increases their retirement savings without extra personal cost. Matching contributions can significantly boost their overall retirement fund.”
They Have a Clear Retirement Budget
Having a plan of action and sticking to a budget can help build a sizable nest egg.
“Planning a detailed retirement budget helps them understand future expenses and savings needs,” Plummer said. “It ensures they save enough to maintain their desired lifestyle in retirement. A clear budget also provides peace of mind and financial clarity.”
He added, “Failing to create and stick to a budget can lead to overspending and reduced savings … Use budgeting apps to track and manage spending effectively.”
They Consult With Financial Advisors
It’s easy to stop following a retirement plan, especially during inflation and unexpected hiccups, but meeting with a financial planner can help you get back on track.
“Seeking professional advice indicates a willingness to make informed decisions and optimize their retirement strategy,” Plummer explained. “Advisors can help tailor a plan to meet their specific goals. Regular check-ins with advisors ensure their plan stays relevant and effective.”
They Plan for Healthcare Costs
“Factoring in potential healthcare expenses shows they’re preparing for all aspects of retirement,” Plummer said. “This reduces the risk of financial strain from unexpected medical costs”
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