A recent study found that Generation X is the most financially behind in saving for retirement compared to other generations due to financial burdens, such as caring for aging relatives and children. The typical Gen X household only has an average of $40,000 in retirement savings. However, experts emphasize that it’s not too late to make a plan and start saving for retirement, providing insightful advice for individuals in their 50s.
According to Keri Dogan from Fidelity, the transition from saving for retirement to living in retirement is one of the biggest life changes a person will experience. It’s important to create a vision for retirement, think about when you can afford to retire, make money last, and consider important decisions such as healthcare coverage. Additionally, it’s essential to prepare for adjustments along the way, given that retirement may happen sooner than expected.
It is also advised for individuals to make use of catch-up contributions when they reach 50 years of age and to consider seeking help from a financial planner. Despite the various challenges faced by Gen Xers in saving for retirement, by taking proactive steps, it’s still possible to achieve a financially comfortable retirement.