Gen X is lagging in retirement savings, but there are ways to catch up

Gen X is lagging in retirement savings, but there are ways to catch up

They saved quarters to play Pac-Man, but Generation X is lagging in retirement savings.

A new study says more than half of Gen Xers, those born between 1965 and 1980, don’t feel financially prepared to retire.

Financial planner Bjorn Amundson at Quarry Hill Advisors in St. Paul recommends if you’ve fallen financially behind, you can take advantage of retirement-plan catch-up contributions.

“Once you hit age 50, you get to start putting an extra $8,000 a year into your 401(k),” Amundson said. “For just three magical years between the ages of 60 and 63, instead of putting the normal $8,000 catch-up, you can do $11,250.”

The study by Transamerica Center for Retirement Studies showed 17% of Gen Xers have already dipped into their retirement savings by taking a hardship early withdrawal.

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