People who are about to turn 59 and a half are part of the age group known as Generation X. This sector of the United States population is about to reach the long-awaited retirement. Unfortunately, joy soon turns to worry after a new study found that 40% of people in those ages don’t have a penny saved for retirement.
The National Institute for Retirement Security (NIRS) presented a report that found that 40% of people born between 1965 and 1980 have not saved anything for their retirement. This is a worrying issue, since the oldest people in this group that is part of Generation retirement.
Generation X is the first generation of American workers to come of age with 401(k) plans as their primary retirement vehicle. In the 1980s, a “do-it-yourself” policy was established, in which traditional pensions were set aside so that each worker was responsible for saving, investing and withdrawing through these instruments, 401 plans (401 plans). k), their respective funds to live their retirement.
“Members of Generation .
It should be noted that those who are already 59 and a half years old this month have the youngest age at which can start withdrawing money from their retirement accounts without penalty.
NIRS found that the typical Generation X household with a private retirement plan had an average of $40,000 in retirement savings at the beginning of this year.
“Most members of Generation “The American dream of retirement will be a nightmare for too many Gen Xers,” Doonan said.
This do-it-yourself policy has left millions of workers stranded who do not have access to a 401(k) plan through their job. Only 55% of Generation X workers participate in an employer-sponsored planNIRS found.
In another discouraging fact, a recent study by Natixis, an investment specialist company, almost half of Generation X Americans, 44% report that it will take a “miracle” to be able to retire safely.
While most Gen X Americans plan to retire one day, almost a quarter, 24%, say they will not retire. About 1 in 5 members of Generation X believe they “cannot afford” to stop working even if they could save $1 million for retirement, according to the study.
“Generation X is the Jan Brady of demographics. They’re caught between Baby Boomers and Millennials, and they’ve been overlooked. Many now find themselves caring for both aging parents and growing children while under pressure to fund their retirement,” said Dave Goodsell, CEO of the Natixis Center for Investor Insights.
The average retirement savings for Generation X households is about $150,000., according to the Natixis study, a more optimistic amount than the $40,000 average found by NIRS. Still, both fall far short of the roughly $1.5 million Americans say they need to retire comfortably.
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