As the oldest members of Generation X approach age 60, retirement decisions are at the forefront. Many Gen I’m starting to have doubts.
According to a recent study from F&G, 71% of Gen Xers are considering delaying retirement to 2024, up from 65% in 2023. Almost half (49%) said they were worried about not having enough money for retirement. But even amidst the instability and uncertainty, there are steps Gen Xers can take to allay these concerns.
Retirement considerations for a new generation
It’s no secret that retirement looks different for everyone, and today’s generation is approaching retirement with even more consideration than their parents and grandparents. Like me, the concept of retirement may look different for current and future retirees, whether they want to continue the intellectual challenge and stimulation that comes from their work or pursue new passions. yeah.
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It’s important to keep in mind that retirement planning is not one-size-fits-all. The traditional paths taken by our parents and grandparents may not align with Generation X’s personal aspirations and evolving life circumstances.
That doesn’t mean there isn’t a wealth of knowledge about retirement planning that baby boomers (both older and younger like me) can pass on. However, it’s important to remember that Gen Xers need tailored advice tailored to their unique financial challenges and aspirations. This kind of advice is not necessarily passed down from generation to generation.
How carefully can Generation X protect their nest eggs?
For Gen Xers, this is a critical time to shift focus from simply accumulating wealth to strategically planning the distribution of retirement savings. This generation is often tech-savvy and has a do-it-yourself mentality, but supplement your expertise with a professional financial coach who can discuss both your personal financial goals and the products that can help you reach those goals. I think that is also useful. reality.
A particularly attractive but often overlooked option for Gen Xers is annuities, which allow investors to add a layer of protection and pursue growth potential. Specifically, our research found that less than a quarter (19%) of Gen Xers own an annuity.
Pensions can take pressure off a portfolio while giving people peace of mind that they won’t outlive their savings. The traditional company pensions that many of their parents relied on are now a thing of the past, and pensions could offer Generation X the opportunity to generate their own pension-like income. These products are also suitable for dealing with inflation and stock market fluctuations.
They fit into a generation that has experienced a variety of global upheavals, including the 1990s boom and subsequent dot-com bust, the 2008 financial crisis, and more recently the pandemic and nascent inflation concerns. It’s late now. With that in mind, it’s no wonder Gen Xers have concerns about volatility in the back of their minds. In fact, we found that nearly half of Gen
Why Gen Xers should consult an “expert”
We recommend that you consult a financial advisor before purchasing any annuity or financial product. Financial advisors are important partners who can ensure that the products people are investing in meet their financial needs. However, our research shows that only half of Gen Xers currently work with a financial advisor. For those looking for safety and certainty, a financial advisor can help put you on the path to a reliable income and a stress-free retirement.
But no one expects a financial advisor to do all the work. It’s important to be prepared for every conversation you have with your financial advisor. Online tools like retirement savings calculators, budgeting tools, and investment tracking apps give people the data they need to ask the right questions and make sure both people and their financial advisors are on the same page. can.
Retirement is more than just a number. It has different meanings to different people. By addressing financial concerns now, Gen
Note: The F&G survey was conducted online by Directions Research and was conducted among a nationally representative sample of 2,048 U.S. adults from May 1 to May 16, 2024. Respondents were Americans age 50 and older who were financial decision makers and had at least $100,000 in financial products/savings.
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This article was written by and represents the views of our contributing advisors and not of Kiplinger’s editorial staff. You can check your advisor’s record with the SEC or FINRA.
