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Apr 21, 2008 -- Generation X not saving for retirement
Members of Generation X don't think they'll ever be able to stop working, according to a survey from the BetterInvesting organization. Most adults age 27-42 have saved minimally at best for their retirement. In fact, 40% have saved almost nothing at all! Here's the upside: Gen X is not in denial about the dwindling of Social Security. They know they should be saving for retirement -- they just haven't done it. Well, the first step to getting better is to admit that you're ill!
If you don't save, you'll probably have to continue working until you drop. That's so unlike the scenario that faced most baby boomers -- a generation that really lived it up in the golden years. But at the current rate, Gen X won't even have the option of retirement. It goes without saying that Clark wants Gen X to reduce debt and save along the way.
It all begins by buying only the things that you can afford on a day-to-day basis. That's means no 0% in-store financing. We're at a unique juncture in American history where we have the permission to indebt ourselves into oblivion. But that's a choice. And if you make it, you may have to work your whole lifetime and never stop.
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I guess I get to be different and not lumped into the "gen x" category because I remember lessons learned in economics, DCT, and what I learned in scouts with financing. Facing the dwindling social financial resources of the government and required membership in the federal ponsie scheme, I figure that if my family is to survive, it is up to me and my wife and not the responsibility of the federal government to take care of us. Social programs are needed as FDR and Johnson hoped to achieve but they are only a crutch to get you back on your feet. Self reliance is the greatest achievement we can have in providing for our family and our country. Maybe this is why I chose to put myself through a private college rather than accepting the limitations of public education.
Doing well, thanks to my wife's habits
My wife's good financial habits have rubbed off on me they are now a lifestyle. And thanks to that lifestyle, we can both max out our 401Ks and our Roths, have $400K+ in savings and investments, and are on track to retire to fun and/or part-time work in our 50's. It's all about the choices you make. (...and if you make the choice to save instead of spend when the economy is good, you'll be fine when the economy turns bad)
Savings
This Gen X'er would love to be saving, but let's see....laid off, new job making thousands less than before, single (i.e. no one to split the rent with) and what else? Massively higher gas prices. I would love to retire before I die, but I don't see it happening, I'm barely scraping by as it is now. At this point, I've even given up on ever owning my own home, it's just to expensive.
GenX Saver, I have always hated the way all of Gen X was always lumped together as one indifferent lump, too. I have a fantastic work ethic, I'm smart, I don't buy what I can't afford, I vote...no apathy here, thanks.
live rich die poor
If you save a bunch of money for retirement your just going to loose it in taxes and medical bills. Taxes are only going higher. I may be out in the street at 65 but I will have lived a great life till then.
Not Merely The Allure of Shiny Objects
Saving is great and we all should be doing it. However, the reason Gen Xers are not saving is not simply because we are won over by the allure of consumerism and easy credit. We would like to save move, but the decline in real wages has hurt this generation. Also, the decline in union jobs with pensions has made it an uphill battle. The economy is a much more competitive and difficult place than it was for the boomers and this is reflected in the lack of savings.
RE: Generation X not saving for retirement
As a gen-exer, I can't agree with your statement about completely avoiding 0% in-store financing. I use similar financing opportunities often to make purchases. I belive so long as you have a plan to account for reasonable monthly payments within your cashflow that has you paying it off just before zero rate ends you should be okay. Also having a savings source to hedge against in case of any unexpected loss of cash flow. I understand the case when you finance impulsively, but people should not be scared away from it entirely.
There's still time
I graduated a few years back from school and I guess I did make the mistake of going a little crazy with the purchases. I drive a 3 Series from back in '06 and have no plans to get a new car anytime soon. The trips to Rio, French Riviera, and New Zealand are almost paid off. The student loans I have are a lot, but it's good debt because it went towards school and I pay them off pretty much every month. Believe me, if I start saving at 35 (which is only a few years away) that's plenty of time to save up some cash for retirement, plus my people say that Social Security will be around for sure. So I still plan on seeing the world and living life like everyday like it's the last one until I settle down.
I'm saving for retirement!
I'm saving nearly 20% of my income for retirement! I get a bit frustrated with being lumped into the same bracket as the non-savers. If 40% haven't saved anything, that means that 60% have!
