Key Takeaways<\/p>\n
For many Americans, peak earning years are between the ages of 45 and 54, and many of them worry about saving enough for retirement. For many Americans, retirement is a constant worry. According to BlackRock<\/a>, 47% of Americans between the ages of 45 to 54 worry about their retirement savings at least once a day.\u00a0 These financial moves will help to assuage some of those worries.\n<\/p>\n “It\u2019s common for Gen Xers to feel squeezed between saving for retirement and living a meaningful life now. The good news is that they are achieving peak incomes,” said Preston Cherry, CFP and founder of Concurrent Wealth.<\/a>\n<\/p>\n Here’s how Gen Xers can move into greater retirement savings and less worry.<\/p>\n Start Saving Early <\/p>\n When it comes to retirement savings<\/a>, young investors have an advantage because the money they invest has the advantage of growing with compound interest over several decades. Assuming average stock market returns of 6% to 7%, every dollar you invest now can triple or quadruple by the time you retire.\n<\/p>\n People in their 40s and 50s have shorter time horizons, but investing 10 to 20 years<\/a> out from retirement can still make a difference in their retirement savings.\n<\/p>\n Save Regularly <\/p>\n If you aren’t already doing so, automate your retirement savings strategy<\/a>. Put aside money with each paycheck or each month, even if it’s only a small amount<\/a>. These steady payments can help your retirement savings grow, and they can also help to calm some of the panic you may be feeling about retirement.\n<\/p>\n You should also establish an emergency fund<\/a>. Put three to six months of living expenses in a high-yield savings account<\/a>, and only reach for it in times of an emergency. This will reduce the temptation to tap your retirement funds for surprise expenses, which can potentially incur hefty penalties.\n<\/p>\n Take Advantage of Retirement Accounts <\/p>\n A 401(k) or similar tax-advantaged plan is a great way to build up your retirement savings, especially if it comes with a matching contribution from your employer. As a rule of thumb, investing 10% to 15% of each paycheck<\/a> is a good goal.\n<\/p>\n In 2025, you can contribute as much as $23,500 in a 401(k). This amount goes up to $70,000 when your contributions are combined with your employer’s contributions. If you are in your 50s, you may invest in a catch-up contribution<\/a> of $7,500 into your 401(k).\n<\/p>\n
\nThe earlier you start saving for retirement, the more you can benefit from compound interest<\/a>.
\nTaking advantage of retirement accounts, such as 401(k) plans<\/a>, and individual retirement accounts is a way to build savings and ease retirement concerns.<\/p>\n