Hi there, I’m Elisabeth Dawson!

Many of us in Gen X—that’s folks roughly between their mid–40s and 50s—are starting to think more about retirement. It’s an exciting time, but let’s be honest, it can also be a bit nerve-wracking. 

A recent study by Allianz Life found that only 62% of Gen Xers feel confident about affording the retirement lifestyle they want. That’s compared to 82% of Baby Boomers (the generation before us) and 77% of Millennials (the generation after us!).

With this in mind, I want to talk openly and honestly about the challenges we face as Gen Xers saving for retirement. More importantly, I want to share some actionable steps we can all take to feel more secure about our future.

Facing Our Regrets: We Wished We Saved More

Let’s face it: most people look back and wish they’d been more aggressive with saving for retirement. The Allianz study found that over half (55%) of Gen Xers regret not saving more. Let’s take a closer look at all those things constantly draining our bank accounts and keeping us from saving more for retirement. 

The Roadblocks We Face: What’s Keeping Us From Saving More?

There are a few common obstacles Gen Xers face when it comes to saving. Daily expenses, credit card debt, and mortgage payments can all make it difficult to set money aside for the future.

  • Daily Expenses: Groceries, gas, and all those other everyday necessities add up fast. The Allianz study found that 61% of people feel the pinch of daily expenses when it comes to saving for retirement.
  • Credit Card Debt: Those pesky credit cards with high interest rates can keep us from our savings goals. Forty percent of Gen Xers identified credit card debt as a significant hurdle.
  • Housing Debt: Owning a home is a great dream, but the mortgage payment, property taxes, and insurance aren’t cheap! Thirty-nine percent of us struggle with housing debt, making saving for retirement even more challenging.

Taking Action: Steps to a Secure Retirement

Alright, so we’ve talked about the challenges, but the good news is it’s still possible to get back on track! The key to success is having a structured and strategic plan. Such a plan requires actionable steps you understand and can commit to.

Here are some actionable steps to get moving in the right direction:

  • Create a Plan to Pay Down Debt: Sixty-four percent of Gen Xers say they are focusing on paying off debt, which is fantastic! Prioritize those high-interest credit cards first. The sooner you get rid of that debt, the more money you’ll have to save for retirement.
  • Build Your Emergency Fund: Life can throw us curveballs, and having an emergency fund can help you avoid tapping into your retirement savings when the unexpected happens. 58% of Gen Xers are working on building an emergency fund. Focus on setting even a small amount aside each month to build up your emergency fund. This can prevent you from getting knocked off track when an unexpected or immediate need arises.
  • Boost Your Credit Score: A good credit score can save you money in the long run by giving you access to lower interest rates on loans. Fifty-five percent of Gen Xers are focusing on improving their credit scores, which is a smart move. Two simple ideas are to set aside time to ensure you pay your bills on time and carry more cash so you don’t max out your credit lines.
  • Automate Saving for Retirement: Saving for retirement is easier when you don’t have to think about it. Set up an automatic transfer for your contributions so that it’s happening regularly without adding one more thing to your plate.
RETIREMENT PLAN

Don’t Go It Alone: The Power of a Financial Plan

Here’s the thing: saving for retirement isn’t just about putting money away. It’s about having a clear plan for how you’ll use that money to live comfortably in your golden years. A whopping 58% of Gen Xers don’t have a written financial plan. Unfortunately, this lack of clarity contributes to financial stress and often leads to financial hardships in the future.

Turn Your Dreams into Reality: The Benefits of a Financial Plan

A well-crafted financial plan goes beyond just crunching numbers. It’s about translating your hopes and dreams for retirement into a concrete roadmap. Here’s how a financial plan can empower you:

  • Visualize Your Retirement Lifestyle: Do you dream of traveling the world? Spending time with grandkids? A financial plan helps you estimate your retirement income needs based on your desired lifestyle. This allows you to see if your current savings track is on target or if additional strategies should be implemented. It also helps to motivate you when you understand what you are working toward.
  • Invest Strategically: A good plan considers your risk tolerance, timeline, and objectives. Do you understand the risk exposure within your investments? Or could a market correction send your plans for retirement down the drain? An experienced advisor can help you create an investment portfolio that aligns with your risk profile and retirement goals.
  • Optimize Your Social Security Benefits: Social Security is a reliable source of income for many retirees. A financial plan can help you determine the best time to claim your benefits to maximize your lifetime payout and coordinate with your other income streams.
  • Plan for Healthcare Costs: Healthcare expenses can be a significant drain on retirement savings. A good financial plan will factor in potential healthcare costs and offer strategies to mitigate them, such as exploring long-term care insurance options.
  • Minimize Taxes: There are tax advantages associated with certain retirement savings vehicles. A financial plan can help you leverage these benefits to keep more money in your pocket vs. handing it over to the government.
  • Prepare for the Unexpected: Life throws curveballs, and retirement is no exception. A financial plan can help you build buffers for unexpected events, such as job loss, illness, or injury. This peace of mind can be invaluable.
  • Leave a Legacy: Many of us want to leave something behind for our loved ones. A financial plan can incorporate estate planning strategies to ensure your wishes are carried out after you’re gone.

Remember, a financial plan is a living document. Your circumstances can change over time, so it’s important to review and update your plan regularly. A good financial advisor will help you stay on track and make adjustments as needed to ensure your plan continues to reflect your evolving goals and priorities.

Seeking Professional Help: A Partner in Your Journey

Creating and maintaining a financial plan can feel overwhelming, especially for those who aren’t financial experts. The good news is, you don’t have to go it alone! Only 35% of Gen Xers currently work with a financial advisor. Here’s why seeking out professional guidance is a smart move:

  • Personalized Strategies: A financial advisor will consider your unique financial situation, risk tolerance, and retirement goals to develop a customized plan just for you. They often know how to tailor certain strategies to best suit your needs and desired outcome.
  • Investment Expertise: The right advisor will help you gain a deeper understanding of your investments. They can help you navigate many options – even some you may not know about – to choose what best aligns with your risk profile and goals. They can also help you structure certain investments to complement your overall financial plan and achieve the best results.
  • Ongoing Support: Our priorities can change over time and your financial advisor has the expertise to help you adjust your plan accordingly. They can also help you avoid potential missteps and answer any questions you have along the way.

Finding a financial advisor you trust can make a world of difference in your journey towards a secure retirement. Seek out the right fit for you; someone who you feel comfortable with and who understands your specific needs.

A Brighter Future Awaits

The Bottom Line: A Brighter Future Awaits

Look, I get it. Retirement planning can be stressful. But here’s the thing: you’re not alone. There are millions of Gen Xers out there facing the same challenges and harboring the same concerns. It’s ultimately your choice to take actionable steps to feel more confident about your future.

By setting up the right financial structure, you may find it easier to prioritize debt repayment, build emergency funds, boost your credit scores, and increase retirement contributions. Remember, it’s never too late to get started, but you have to take the first step to move toward the brighter future you deserve.

Ready to Take Action?

If you’re feeling motivated to take control of your financial future, we’d be delighted to partner with you. Here’s how we can get started:

Get your complimentary “Retirement Income for Life Blueprint“: This valuable resource will provide a personalized estimate of your potential retirement income and identify any gaps you might have. It’s a fantastic first step towards creating your retirement roadmap.

There are two ways to claim your free blueprint:

  • Call us at (619) 640-2622: A friendly member of our team is happy to answer your questions and get you started.
  • Schedule a free consultation online: Simply click here to schedule a convenient time to chat.

Let’s Connect and Get Started!

Don’t wait any longer to turn your retirement dreams into reality. Together, we can create a personalized plan that empowers you to achieve your financial goals and build a future filled with peace of mind and security.

Let’s start building your dream retirement today!

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Please feel free to reach out to us if you have any questions.