Gen Xers Behind on Retirement Savings
Gen Xers are busy juggling many financial responsibilities, from balancing work and family life to taking care of aging parents and saving for college. Here are some tips to help ramp up your retirement savings.
Life stage retirement planning series
Generation X is recognized for being trailblazers, independent thinkers and adaptable workers. Many Gen Xers have to focus on balancing work and family while also taking care of aging parents, managing debt, and saving for college and retirement goals. Building up retirement savings has been a challenge for Gen X as they strive to juggle many financial responsibilities.
Many Gen Xers have fallen behind on saving for retirement. A Transamerica survey found that the median savings balance for Gen Xers is $64,000. Although this may seem like a decent amount to sock away, it’s not nearly enough for most people to support themselves for 20–30 years in retirement. The good news is there’s still time for Gen Xers in their 40s and 50s to get on the right track.
Smart Moves to Make Now
Here are some tips to help ramp up your retirement savings:
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 to make retirement a higher priority.
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.
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.
Build your safety net. Having a financial safety net for unexpected expenses or a job loss can help you get through challenging times, and keep you from draining your retirement accounts to cover expenses in a pinch.
Meet with a Professional
An Amegy Bank can review your financial situation, estimate how much you need to save and work with you to create a plan. Connect with us to learn more about wealth management services designed for every stage of your financial life. Keep reading: Millennials feeling the pressure of the pandemic .
This financial institution does not give tax advice. Consult your tax advisor for information specific to your situation.