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Half of Gen X Doesn't Expect to Retire |
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Cathie Ramey
RedwoodAge.com
Boomers who are frustrated that they can't
afford to retire may turn out to be lucky compared to their kids.
A new survey shows that more than two-thirds of Generation X don't think they'll
be able to retire at all.
 Unlike their parents - the 78 million boomers who are planning
to retire and receive income from Social Security - nearly half of those
born between 1965 and 1981 have no such hope, according to the 2008 American
Retirement Study.
The study shows Gen Xers are "the most stressed group financially right
now," said Chris Moloney, the chief marketing officer of Scottrade who
commissioned the study along with BetterInvesting.
"They are earning money and paying into Social Security and yet they
fear they may never see the payback," said Moloney. "They feel they
deserve it, but it looks like a financial black hole to them right now."
Part of that feeling may extend from watching what boomers are going through.
Many feel financially
unprepared to retire and most
plan to keep working past traditional retirement age. Some aging experts
have also noted a
rising number of homeless among the elders, which may be an ominous sign
of things to come.
To prepare for their own retirement, Gen X is trying to save money in
401(k)s, IRAs and traditional retirement savings accounts.
As with their parents,
how much to save for retirement remains somewhat of a mystery. One in five
say they haven't begun saving while two in five have less than $25,000 saved.
Interestingly, more than one-third want to have anywhere from $1 million to
more than $5 million available when they leave the work force.
"Gen X is in the middle of a 'retirement perfect storm' - very high
expectations, low retirement savings and massive concern about the future of
Social Security," said Moloney.
Gen X Action
When compared to other age groups, it appears that Generation X is making
plans for their future. The survey shows they are saving more and spending less.
More of them are paying down debt and thinking twice about using their credit
cards.
Gen X is known as the "baby bust" because birth rates dropped
dramatically after the baby boom years. That will have a big effect as a smaller
number of Gen Xers takes care of the enormous population of aging boomers and
their own children.
"However, this generation more than others shows that they are trying to
prepare for an uncertain future," according to Moloney. "This is a
highly stressed generation, but also a highly motivated one."
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Comment by GUEST on 2008-04-17 16:15:16
i'm a boomer and i don't even expect to be able to retire on social security. the best i can do is get debt free and figure on working till i die. gen x my ass. they're doing the same thing as my generation - what's in front of them to do. like we had any choice when the govt made its decrees.... |
Comment by GUEST on 2008-04-17 16:12:46
Rather than plan for retirement I am slowly eating and drinking myself to and early grave. Would I like to Supersize that? Heck yes!! |
Comment by GUEST on 2008-04-17 16:05:20
"They are earning money and paying into Social Security and yet they fear they may never see the payback," said Moloney. "
I'm in Gen-X. I don't fear I'll never see the payback -- I KNOW I'll never see the payback. Fear does not enter the equation. Annoyance, anger, and betrayal are much closer to me.
Socialism brought Russia and Eastern Europe to it's knees, and the US continues to run huge socialist programs such as retirement. Arguing that citizens have a right to health care is one thing -- arguing they have a right to gov't funded retirement is asinine.
"I'm a GenX'er. If I could have taken all the money that as been extorted from me in the form of Social Security payments and saved/invested it. I would be able to retire at 50. "
I'd bet it would be more like 45 for me. |
Comment by GUEST on 2008-04-17 16:00:49
whatever. I knew it was a waste of time anyway. back to slacking. Baby boomers took everything and gave piss and shit back (oh and global warming)
and Bush. what a winner. the biggest slacker of all, my president. (gag) |
Comment by GUEST on 2008-04-17 15:59:03
i make fricken 92,500 in nyc. i paid so much in federal bc no kids, then nys tax, like 5k, and on top of those 2, NYC city charged me an additional 10% tax to live here --- $1700 + 3.6% if u earn over 80K. GRRR!!!! and that dont count the medicare tax, the ss Tax, plus I have to give my dumb parents money to pay their car loan and credit cards, which have a 30% interest rate. my mom said she didnt reazlize it was so high, and now i have to help, or she'll really be pinched.
I hate my life and have considered death as an alternative to this financial rape. But what the hell you know ... living on the street might be fun. Oh yah, did i mention m y DR. wanted me to start paying 2k a MONTH (yah, insurance pays now) for the humeria pen, for my "arthritis" ... this is just carpal tunnel bc i TYPE 13 HRs a day for the last 15 years of my life.
american dream my butt. |
Comment by GUEST on 2008-04-17 15:06:27
Yeah I'm working until the day I die and don't even expect to retire. Too bad I have die at work. I'll be sure to drink plenty of fluids so that I leave a big mess. No not bitter at all just tired. |
Comment by GUEST on 2008-04-17 15:17:41
Born in 74 and saving like crazy. should be financially free by 45. |
Comment by GUEST on 2008-04-17 15:51:17
NOT buying the birkenstock advertised on this site would be a pretty good start to save up on retirement. they used to be 20 bucks back in the day and even then I wouldn't have bought 'em because they are butt-ugly.
be careful with the pricing of zero-effort products .. otherwise the angry grey mob will come and get you in 2045! |
Comment by GUEST on 2008-04-17 13:27:13
I'm a GenX'er. If I could have taken all the money that as been extorted from me in the form of Social Security payments and saved/invested it. I would be able to retire at 50.
As it is now. I'll be lucky to be able to retire. |
Comment by GUEST on 2008-04-17 13:37:53
Retire? Whats that? Work my fingers to the bone. |
Comment by GUEST on 2008-04-17 14:37:45
I just put $4K into my IRA since I make to much for ROTH IRA.
I hope I make too much for a long time, since I am highly levereged in $40K Studnt Loans, $30K in credit cards debt.
ON the other side I have no wife, no kids and a six figure income!
Should be a fun life!! |
Comment by GUEST on 2008-04-17 14:40:03
Same here, I am 30. I am earning a ton of money, but got close to zero in my account, while not even available to afford kids, something I really would love to do, you know that classic family dream... Why? I am putting away all of it into student loans, retirement, Iraq, my health insurance, my rent, my food, etc... If I wanted a vacation it would have to come out of SS, until then sucks to be me... |
Comment by GUEST on 2008-04-17 17:45:05
Not only does a good chunk of my money go to social security and medicare (which I'll never see back), the government makes the dollar worth crap by bailing out investment banks who bought bad mortgages. They lower the interest rate to almost nothing, load up a 9 trillion dollar debt, and then print all this excess money via the Federal Reserve. They take my money, then make my money worthless - outright thievery. I dread the day OPEC dumps the dollar from oil transactions - I'll be investing in guns and ammo then. Thanks America for screwing over the younger generation. |
Comment by GUEST on 2008-04-17 16:15:56
Social Security is not the biggest problem; instead, it is medicare
'entitlements' and more specifically, the last year or two of care. Basically, doctors are currently obligated to do 'everything possible' to keep one alive in late-stage care. When millions of boomers start entering this late stage (where the costs quickly add up to thousands of dollars a day in order to keep a terminally ill patient on life support - WHY???), the money simply will run out and you can expect to see these ideals end. |
Comment by GUEST on 2008-04-17 16:55:41
Yeah retirement is in the toilet for me too. I really blame corporate america not taking individual responsibility and taking way too much on an individual level and not spreading the wealth.
The retirement dream doesn't exist anymore, Americans needs an enima to snap out of that thinking and social security with the irs is just a plain joke! |
Comment by GUEST on 2008-04-17 16:16:28
The new American retirement plan is a gun in the mouth.
In our shiny new 'ownership society' everyone worth less than 10 million is just surplus population anyway.
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Comment by GUEST on 2008-04-17 22:00:27
Don't complain, just work harder. I have 4 kids, single income, nice home and save almost 20% of my paycheck. Yes I paid my own way through college too. Just don't spend your money on a bunch of crap that you don't need and you will be fine. |
Comment by GUEST on 2008-04-17 20:51:20
Bitter yes. but frankly we are screwed here folks. The economic system that we have running the global markets is really what is causing the problems. Hyper inflated oil prices not caused by demand but rather by investors driving prices in every sector including food. Until we get control and end global economic systems and replace them with self supporting resilient communities we are going to continue on the downward slide. Welcome to the new fuedalism. |
Comment by GUEST on 2008-04-17 19:45:01
Barack was right about people being bitter. And they have a right to be. But how about less complaining and more action. The politicians are employees of the people. Don't forget that. If they aren't doing the job, we ourselves should be running for office and at the very least, voting for change.
I am a gen-X-er trying to save for retirement but it's tough and keeps getting tougher every year. I expect social security to still be around when I retire but I guess it will be less "generous" if you can use that word. I agree that Medicare/Medicaid is a far bigger problem (10 times worse).
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Comment by GUEST on 2008-04-18 11:25:46
Suck it up.
As far as I can tell all the Baby Boomers ever did for GenX was destroy their childhood homes through divorce, obsess about themselves to the detriment of their children/environment/society, and spend the stock of capital their parents (the "Greatest Generation") worked so hard to build on pointless consumption. They went to work for big companies and ensured that they got pension plans so lucrative that in order to stave off financial ruin the companies could only give GenX employees underfunded 401K matches.
On top of that, they rationalized their greed through self-congratulation about their (backrupt) social consciousness. The antiwar movement in the 60s? Please... that was at core a bunch of worthless who didn't want their asses shot at in a war that didn't make sense to them. The Feminist Movement? Come on... that was just the coup de grace of changes that had been at work in society for 100 years. The boomers didn't have an original idea - and they call GenX slackers.
Speaking of which, why work hard when all you can expect for your trouble is a kick in the head?
But as I said... suck it up. If you don't like the rules, make your own. GenX is building families and relationships with our children that will hopefully take us into old age. We value hard work, and don't carry the sense of entitlement that our parents had. We take the worst shit given to us and try to turn it into fertilizer to grow something better.
And, oh yes, we are all going to pick out the cheapest retirement homes we can find for our Boomers parents and let them rot in them unwanted. They can't hardly expect much help from people they left out to hang. |
Comment by GUEST on 2008-04-18 14:46:33
I don't care if SS colapses or not; it's not going to be enough to live on. My real lack of confidence is in my privately funeded pension plan. I bet 100:1 odds they will bail on me; just like the coporate rich did.
Anyhow, I was making great money for many years. Couldn't save a nickle, because of student loans, car, etc. Lost that career and now I'm just trying not to stay afloat. I cashed in 401 for keep out of bankrupty and loosing house.
Really like a lot of people I know, I just wanted to sell the house AND GET THE HELL OUT OF HERE.
I'm also carrying a significant amount of student loan debt that my calculations show I will never be able to repay. What kind of legacy is that to leave your kids. Hence, I have none.. Thank god.
For an 'ownership' society I don't feel like the tiny few shinny gadgets I have are worth the hassel. I could as easily be working poor and not deal with this stress.
Maybe if enough people expat, the system won't collapse and they can get away with screwing the workers some more.
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Comment by GUEST on 2008-04-17 23:54:39
GENERATION WAR- Woo hoo! Yet another distraction from solving our problems.
There truly is no end to the ways we can be divided. |
Comment by GUEST on 2008-04-18 02:20:44
"Socialism brought Russia and Eastern Europe to it's knees, and the US continues to run huge socialist programs such as retirement. Arguing that citizens have a right to health care is one thing -- arguing they have a right to gov't funded retirement is asinine."
You do not have the vaguest idea of what socialism is and what brought the Soviet Union down. You have no idea of how a health care system works and how a functioning pension plan works. THAT is why you won't be able to retire.
The biggest socialist program in the US today is the socialist program that saves the banks to the detriment of your ability to pay for food, gas, rent, you-name-it. The banks do not allow you to share in their profits, which they privatize, yet they force you to pay for their losses by socializing their costs when their super smart investments and amazingly ingenious contracts tank in the most abysmal manner.
You decry the right of people who paid throughout their careers for a decent retirement scheme, which they were screwed out of because the plan was fully funded -for the workers- and not for senior management [who make money enough already] that subsequently stepped in and stole the US worker's pension. THAT is why there is no pension.
All the while you and your ilk keep bleating about socialism, which you don't know the first thing about, while those responsible for your misfortune walk away with you pension and benefits and you applaud them as they do it.
Your incomprehensible ignorance about matters that directly concern you is served an awesome lesson by returning the favor in the form of a work-until-you-drop-dead outcome that could have been prevented by *gasp* a socialist program.
Socialism is the bastard child of capitalism. There would not be socialism if it wasn't for the rampant greed of capitalists.
Socialism is entirely different from communism, which you also don't know the first thing about.
Small wonder you'll have no pension. |
Comment by GUEST on 2008-04-17 22:34:09
I am 41. Born in 1966. Been saving hard for 17 years. Right now I save 6k/month and yet when I do the calculations based on 6% return and 4% inflation I will never be able to replace my income. (I use 6% b/c I don't believe it's possible to get 8 or 10%)
Our generation is screwed. We pay about 12k social security per 100k income (employee half and employer half) . Someone making 30k thirty years ago probably only paid 1-2k total per year social security. How the hell do they think they have a right to 12% of my income or that Im going to have enough left over after bailing out their sorry asses to ever be able to retire.
People....I run the numbers every night then work all the overtime I can just to make the numbers work. I'm not there yet. I've been repeating this task for 17 years. Do you get what I'm saying? WE GEN Xers WILL NEVER RETIRE unless you can come up with 4-5million bucks at a minimum!
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