Generation X and Their Retirement

Generation X and Their Retirement

Core Facts

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People in Generation X (those in their 30s and 40s) have solid reasons to be stressed out about their financial futures. Many are saddled with debt, have not saved as much as they should have for retirement, and perhaps were underemployed during recent economic downturns. 

The worries of many Gen Xers regarding their retirements is evident in a recent survey by the Insured Retirement Institute (IRI), and the statistics are sobering. 

35% of Gen Xers report having more trouble in the past year paying their mortgage or rent.

13% of them withdrew funds from a 401(k) prematurely from a retirement account over the past year, while 18% stopped contributing to one.

58% of Gen Xers believe they will retire at age 65 or later, and 24% think they'll work until at least age 70.

Only 24% are confident that they'll have enough money with which to live comfortably in retirement.

41% see themselves as not very knowledgeable or not at all knowledgeable about investing.

56% have less than $100,000 socked away for retirement. 

These are troubling numbers, there are no doubts. Anyone struggling to pay for housing is not likely to be able to save money for retirement -- not to mention for college or other needs. 

Clearly, this is not an ideal situation for people in their 30s and 40s. But the picture is not completely bleak. 

Reasons to be hopeful

Gen Xers have many options and one key edge: time. Even if they're one of the oldest Gen Xers, roughly 50 years old, they may still have 15 or more years in which to save aggressively and invest effectively. 

If you have 15 years until retirement and you put away $8,000 per year in an IRA, 401(k), or other account, and you earn the stock market's long-term average annual return of close to 10%, which equates to about $280,000, a handy amount, and if you can do so for 20 years, you might end up with $504,000!

A smart move for Gen Xers (and anyone else for that matter) worried about their financial future is to take the time to draft a retirement saving plan, estimating how much you'll need to amass, how you'll do so, how you'll spend money in retirement, and so on. Speaking with a financial advisor on the subject is also good advice for anyone. 

No matter what your current financial situation is, with a little planning, your retirement years are still there for you, and they can be blissful. 



Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities. 

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. 

Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable-- we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC


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Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Teaneck and Princeton, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 516-921-4200 Visit our website:

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Jake Mendlinger
Account Manager
516.829.8374 X 232

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