Members of Generation X approach retirement with a blend of strategic preparation and increasing apprehensions. A recent poll revealed that 71% of Gen Xers are contemplating postponing their retirement plans in 2024, an increase from 65% in 2023. Almost half (49%) expressed concerns about insufficient funds for their retirement years.
It’s crucial to acknowledge that the retirement experience is not universally applicable. The conventional route taken by older generations may not resonate with the personal aspirations or evolving circumstances of Gen Xers. While there is a wealth of retirement planning expertise available, Gen Xers require guidance tailored to their distinct financial situations and aspirations.
Instead of solely concentrating on accumulating savings, Gen Xers should strategically think about how to effectively utilize their funds as they transition into retirement. With their familiarity with technology, they can enhance their personal financial knowledge by incorporating professional financial advice to make sound decisions regarding their objectives and the most suitable products for reaching those ends. Annuities frequently present an enticing option that may be overlooked.
A recent study indicated that fewer than a quarter (19%) of Gen Xers possess an annuity.
Customized retirement planning for Gen Xers
Annuities can offer reassurance by ensuring that individuals do not outlive their financial resources.
They function similarly to a self-funded pension and are adept at managing inflation as well as the fluctuations of the stock market—issues that are frequently on the minds of many Gen Xers. It is highly recommended that Gen Xers consult with a financial adviser prior to purchasing any financial products, including annuities.
Financial advisers play a pivotal role in confirming that the investments individuals make align with their financial requirements. However, a study shows that merely half of Gen Xers engage with a financial adviser. For those aspiring for security and predictability, a financial adviser can assist in charting a course towards assured income and a more manageable retirement experience.
Nevertheless, it is essential for individuals to be well-prepared for discussions with their financial adviser. Digital resources, such as retirement savings calculators, budgeting applications, and investment tracking tools, can provide the necessary information to pose appropriate questions and ensure alignment with their financial adviser. Retirement is more than just a figure; it holds a variety of meanings for different individuals.
By addressing financial worries proactively, Gen Xers can clarify their specific vision for retirement and embark on the journey towards fulfilling their ultimate objectives.
