Posted on 07/09/2024 3:40:08 PM PDT by Libloather
Gen Xers are edging closer to retirement age and realizing that their 401(K) won't go the distance, an alarming report shows.
A survey reveals that 55-year-old Americans have typically saved less than $50,000 for their pension — far below the $446,565 that's recommended at this stage.
Nearly a quarter of them expect to be cash-strapped and plan to turn to their children for support.
More than a fifth said they'd likely need to move in to their kids' spare room or basement as a 'silver squatter.'
Prudential, a finance group, surveyed the oldest members of Generation X, or people born between 1965 and 1980.
They are now entering their pre-retirement years, giving them about a decade to bank more savings before waving goodbye to their workplaces for good.
Many are worried about Social Security cutbacks eroding what's left of America's safety net.
Caroline Feeney, CEO of Prudential's US Businesses, said many 55-year-old women had 'especially precarious' finances as they entered the 'critical 10-year countdown to retirement.'
She urged Gen Xers to look at their 401(K) and rethink plans so they're able 'to live not only longer, but better.'
The rule of thumb for 55-year-olds is to have about eight times their annual salary saved in their retirement accounts.
Instead, the median savings are $47,950.
Only one in five 55-year-olds have saved the recommended $447,000 or more, researchers found.
Many say they've struggled to put money aside throughout their careers thanks to the dot-com bubble burst, the housing crisis, the global pandemic, and surging inflation.
(Excerpt) Read more at dailymail.co.uk ...
Very good...there is hope for many.
In my case I lost near everything when the government shut down my industry for the flu. I lost lots when the real estate market crashed and took down the rental market with it. I lost my first property when the city took my beautiful property through eminent domain at about 10% of what it was valued at.
Those are hard hits. How many others have been hit like that in that age group?
“55-year-old Americans have typically saved less than $50,000 for their pension”
What? I had more than that in my 401k when I was 30...
That’s exactly it. I max out my 401k contributions. The newest vehicle I own is over 10 years old and the most I’ve ever spent on one is $26k.
How much is the Jeep Wrangler that so popular with this demographic?
I retired recently. Actually I was laid off, but get two years severance, keep benefits until severance ends, and get unemployment. There is also job search assistance if I want it. But my job, which enabled me to save for retirement and do things I never thought possible, was never my passion. I enjoyed it, found it challenging, learned a lot and made a lot of friends though. I am thoroughly enjoying my retirement, doing volunteer work, traveling a lot, having my bathrooms remodeled, and anything else I want!
I understand they look at savings and 401K’s. My savings has 20K. I don’t have a 401K. But I have a lot of individual stocks and 5 mutual funds. I am 55 and will be fine in ten years. Problem is what they look at to judge a person’s retirement portfolio. I think Gen X’ers will mostly be fine.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.