While their parents belonged to the “Greatest Generation,” Gen X may soon be carving out a reputation as the “Broke Generation.”
A recent survey conducted by Clever Real Estate polled 1,000 Gen Xers born between 1965 and 1980 to find out how they fare when it comes to personal finances and the road to retirement. A staggering 56% of Gen Xers said they have less than $100,000 saved for retirement, and 22% said they have yet to save a single cent.
While the desire to retire may be there, the money just isn’t. A whopping 64% of respondents said they stopped saving for retirement not because they don’t want to but because they simply can’t afford to.
The reasons for the lagging savings varied, with many citing poor economic conditions and backbreaking student debt as retirement roadblocks. With the eldest members well into their 50s, the reality is that Gen Xers are facing a retirement crisis, and unless they take action now, they won’t be able to retire comfortably, if at all.
Of all the significant events in their lifetime, Gen Xers say the current inflation crisis has had the most impact on their financial situation, surpassing the COVID-19 pandemic and the 2008 recession.
More than two-thirds of Gen Xers (69%) report that inflation has negatively impacted their retirement plans, and 40% say they have no confidence that they can afford retirement at all.
Gen Xers are pinched between two generations. They have to care for their parents from the aging Baby Boomer generation while still shelling out money to help their adult children from the Millennial generation. Tack on personal expenses, and it’s easy to see why these middle-aged Americans are far from the career finish line.
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