Gen X Savings In Right Direction

Thinking about retirement savings?

1965 to 1978. What does that bring to mind? Mick Jagger and The Rolling Stones reaching the top of the music charts (Satisfaction and Miss You). Or maybe Paul McCartney doing the same, first with The Beatles (Yesterday) and then with Wings (With A Little Luck). If you were born during this period, you are considered to be part of Generation X. Flash forward to 2012 and we see both the Stones and McCartney performing live at Madison Square Garden in New York City, with thousands of Gen X'ers and Baby Boomers in the audience. Undoubtedly, Mick and Paul have saved more than enough for a secure retirement. But what about their fans?


According to the latest report from the Employee Benefit Research Institute (EBRI), Gen X is doing well for the most part on the road to retirement savings, particularly when home ownership is factored in. Assuming an individual remains employed until age 65 and maintains housing equity in retirement until financial resources are depleted, four in five have either significantly more than enough or are right around the threshold for retirement income adequacy. This four in five figure is comprised of 49% with greater than 20% more than the threshold, plus another 31% within 20% on either side of the threshold. While this news is mostly positive, EBRI does caution that Gen X single females in the lowest income levels are at risk of not having sufficient financial resources in retirement. The complete findings are reported as part of the November 2012 EBRI Notes.

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