A recent study by Investopedia found that Generation X’s biggest worry is retirement. The survey found that although many members of Gen X feel like they understand their finances, they are still concerned about transitioning into retirement. Nearly one in four Gen Xers are not sure when, or even if, they will be able to retire.
These findings mean that even if Gen X feels like they know what they need to do, they aren’t sure how they will get there. You may be feeling the same way yourself, so don’t worry; you’re not alone.
Most members of Gen X expect to support themselves by utilizing Social Security and/or 401(k) plans, but there is a concern that Social Security may not cover as much as was promised by the time retirement is a reality for Gen X. This is also concerning for many members of this generation who maybe hit a road bump in their retirement savings journey and planned to lean on Social Security to help them achieve their retirement.
Overall, retirement is about finding consistent ways to minimize and cover your expenses and replace that paycheck. Even if you were careful with your finances, you may still feel like you have not saved enough to stop working. So, what can you do? How do you know if you have enough?
Firstly, try to budget as accurately as you can for what you think your expenses will be in retirement. This can at least give you a sense of how much you’ll need month to month, and it will give you something to compare to your savings.
Research income generation tools and strategies. You may realize that, while not ideal or risk-free, there are options out there that can provide you with the amount of stable income needed to achieve the retirement you’re working hard to establish.
Lastly, but important still, talk to a financial professional. Retirement is a huge topic with so many technical terms and surprising pitfalls that it can be helpful to have someone guide you through the process. You might be surprised to learn that retirement isn’t just about hitting a wealth goal or maximizing your annual income. There are plenty of ways to cover your expenses; it just depends on having the right strategy to guide you.
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This document is for educational purposes only and should not be construed as legal or tax advice. One should consult a legal or tax professional regarding their own personal situation. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products offered by an insurance company. They do not refer in any way to securities or investment advisory products. Insurance policy applications are vetted through an underwriting process set forth by the issuing insurance company. Some applications may not be accepted based upon adverse underwriting results. Death benefit payouts are based upon the claims paying ability ofthe issuing insurance company. The firm providing this document is not affiliated with the Social Security Administration or any other government entity.