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Gen X Retirement: How to Prepare

Gen X and Reaching Retirement Goals

Retirement feels far off for a lot of professionals…until it suddenly doesn’t.

According to a 2023 Annual Retirement Study executed by Allianz Life Insurance Company of North America, only 25% of Gen Xers (those born between 1964 and 1978) feel they have enough time to save for their upcoming retirement. In 2021, 43% felt they had enough time.

Gen Xers are also losing confidence in their ability to fund all that they would like to do moving forward. While 86% of Baby Boomers and 76% of Millennials feel assured in their future ability to provide, only 69% of Gen Xers feel the same.

Below are a few ways Gen X can move towards securing their financial future in retirement.

Reducing Debt

Owing as little as possible when entering your retirement years can greatly reduce your monthly costs.

Though Gen Xers tend to have more debt than the Boomers did at their age, your 40’s and 50’s are often your highest earning years of your career, offering the opportunity to get serious about debt reduction.

Whether through lifestyle reduction to allow for larger payments on debt or simply doubling up on payments by way of a larger income, reducing your debt as much as possible can allow for further savings and more expendable income in retirement for hobbies, vacations, going out, etc.

Analyzing Risk in Your Portfolio

As retirement gets closer, reducing your risk throughout your portfolio of investments is important. As you get older and retirement looms larger, your ability to recover from market volatility dwindles, as does your time for awaiting large investment growth.

Beginning to move away from stocks into less risky assets such as bonds, CDs, and annuities is a decision that should be considered. Consulting with financial professionals regarding product options, tax reduction, and social security strategy can ease the burden of making potentially future-altering decisions by yourself.

Catch-Up Contributions

The same 2023 Allianz study shows that 64% of Gen Xers are afraid they won’t have enough money saved when their retirement begins. This number was 55% in 2021.

In the lead-up to retirement, it’s never too late to save. And as you age, you become eligible for making larger contributions to tax-advantaged accounts.

Americans aged 50 and older can contribute up to $30,000 to their 401(k) and up to $7,500 to an IRA. These are called catch-up contributions, as younger investors are more limited with their own contribution ceilings.

Consulting a Professional

54% of Gen Xers, 40% of Boomers, and 47% of Millennials are unsure of the amounts and products needed to prepare for their retirement.

Not only can an experienced financial professional walk you through what you will need to best fulfill your retirement goals, they can also assist with advising alterations or changes to your lifestyle that will help meet these goals. They can discuss how factors like inflation and market volatility will impact your investments in the future, and through decades of experience, can walk you through the oncoming and duration of your retirement years.

To schedule a complimentary financial review with Moore’s Wealth Management, click here or call our office at 770-535-5000, where a staff-member is awaiting your call Monday through Friday, 9AM to 5PM.

Sources:

https://www.kiplinger.com/retirement/what-gen-xers-can-do-now-to-reach-retirement-goals

https://www.allianzlife.com/About/Newsroom/2023-Press-Releases/Americans-Facing-a-New-Retirement-Realit

This material is provided as a courtesy and for educational purposes only.  Please consult your investment professional, legal or tax advisor for specific information pertaining to your situation. 

All information contained herein is derived from sources deemed to be reliable but cannot be guaranteed.  All views/opinions expressed in this newsletter are solely those of the author and do not reflect the views/opinions held by Advisory Services Network, LLC. 

This article may contain links to articles or other information that may be on a third-party website. Advisory Services Network, LLC is not responsible for and does not control, adopt, or endorse any content contained on any third-party website.

Variable Annuity (*if IAR is also a registered rep with a Broker/Dealer, variable annuity advertising may need to be filed with FINRA through their Broker/Dealer)

Variable annuities are offered only by prospectus.  Carefully consider the investment objectives, risks, charges, and expenses of variable annuities before investing.  This and other information is contained in each fund’s prospectus, which can be obtained from your investment professional and should be read carefully before investing.  Guarantees are based upon the claims paying ability of the issuer.

Variable annuities are long-term, tax-deferred investments designed for retirement, involve investment risks, and may lose value. Earnings are taxable as ordinary income when distributed. Individuals may be subject to a 10% additional tax for withdrawals before age 59† unless an exception to the tax is met.

Add-on benefits are available for an extra charge in addition to the ongoing fees and expenses of the annuity and may be subject to conditions and limitations. There is no guarantee that an annuity with an add-on living benefit will provide sufficient supplemental retirement income.

Indexed Annuity. An indexed annuity is for retirement or other long-term financial needs.  It is intended for a person who has sufficient cash or other liquid assets for living expenses and other unexpected emergencies, such as medical expenses. Guarantees provided by annuities are subject to the financial strength of the issuing company and not guaranteed by any bank or the FDIC.

Indexed annuities do not directly participate in any stock or equity investment.  Clients who purchase indexed annuities are not directly investing in the financial market. Market indices may not include dividends paid on the underlying stocks and therefore may not reflect the total return of the underlying stocks; neither a market index nor any indexed annuity is comparable to a direct investment in the financial markets.

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