Three things Generation X needs to focus on to retire successfully:
A recent survey from the Transamerica Center for Retirement Studies found that Gen X Americans are more likely than baby boomers and millennials to indicate they “may never recover” or have “not yet begun to recover” from the Great Recession.
At the same time, they are juggling their careers and caring for their aging parents. And many of them are behind on their retirement savings.
Here are three things to consider if you would like to retire successfully.
1: Your total household retirement savings
“You still have a time horizon where you can build plans, save more and achieve financial security in retirement, but you’re also not getting any younger,” Catherine Collinson, CEO and president of the Transamerica Institute and Transamerica Center for Retirement Studiessaid. “So the sooner you get started and refocused, the better off that you can be in the long run.”
2: Come up with a plan
Get started by first establishing your net worth and then figuring out your budget, Michelle Brownstein, vice president of private client services at Personal Capital.
List all of your assets and debts. Next, write down exactly how much money is coming into your household and how much is going out.
If you fall short, consider adjusting how you spend. That could include dining in more regularly instead of eating out or taking road trips instead of more lavish vacations, Brownstein suggested.
“There’s a lot of shifts someone can make that make a difference in the long term,” Brownstein said.
Also consider cutting your memberships, said Matthew Gaffey, senior wealth manager at Corbett Road Wealth Management, such as to the gym and other clubs, as well as subscriptions to magazines or premium cable channels.
3: Revisit your retirement goals
Once you have a handle on your household budget, then it’s time to assess your retirement plans.
Brownstein suggests coming up with the sum you will need in retirement and planning from there.
“If I need $1 million to fund my retirement and lifestyle at that point, how much do I need to save every year to get there?” Brownstein said.
If you’re behind in your retirement savings or just getting started, be prepared to make some adjustments.
“There can be some trade-offs that have to be made, but the longer someone waits, the bigger those trade-offs tend to become,” Brownstein said.