Gen X, born between 1965-1980, is something of a forgotten generation, a bridge between the larger boomers and millennials.
The oldest Gen Xers turn 60 this year and the youngest are around 45. Their time is nearing for saying goodbye to colleagues for the last time.
Surveys show Gen Xers are downbeat about their prospects in retirement. Finances are strained for those taking care of both children and aging parents. The generation has accumulated more credit card and student loan debt than other generations. They joined the workforce when companies pulled away from pensions and embraced riskier 401(k)s (that is, riskier to the saver). The number of large companies offering retirees health insurance has shrunk dramatically.
To better prepare for retirement, Gen Xers can profitably consult “Retirement Bites: A Gen X Guide to Securing Your Financial Future” by Kerry Hannon and Janna Herron. Their book is a practical retirement-planning guide for Gen Xers still in the earnings prime of their careers.
The data also shows Gen Xers are doing better on average than conventional gloom suggests. Planning makes a difference.
“Taking control of your finances now allows you to build a rewarding future,” they wrote. “You can finally look forward to the years to come instead of covering your eyes.”
The book deals with the basics well. Among the topics covered: The nuts and bolts of retirement savings and investing; the wisdom of hiring professional help for guidance; insights on working longer to boost finances; ways to deal with rising health care costs; and much more. (Full disclosure: Hannon and I often exchange ideas about aging and retirement.)
Their initial framing is spot on. Before diving deep into investment advice and other financial issues related to retirement, first spend some time imagining what you want from the next stage of life. The critical question for this exercise isn’t “What is my number?” but “What is my purpose?”