A recent study indicates an entire generation of Americans is in a retirement crisis. They are being faced with the fear they simply won’t have enough money to retire when the time comes.
A TD Ameritrade survey, reported in USA Today, shows that an estimated one in four Generation Xers said retirement will not be an option.
“Generation X has been through a lot. They have been through three market downturns. [Such as] the 1987 stock market crash, the ‘dot com’ bubble of 2000 through 2002 and also the financial crisis of 2007 to 2008,” Steve Ringo of DeWitt & Dunn Financial Services in Addison said.
According to the survey:
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Forty three percent of Generation Xers said they are behind in saving funds. Almost half of them are worried about running out of money when it is time to leave the workforce.
Another 17 percent said they are not saving or investing in anything.
“Part of the problem is the fact that companies are no longer offering [traditional] pension plans to their employees. It's hard for them to be able to save,” Ringo said.
Ringo added that it was not too late to start making plans now.
“The oldest of the Generation Xers are in their mid-50s range so you still have another 10 to 15 years before you even have to think about retiring,” Ringo said. “In addition to that we are also living much longer. We have a lot more time to put money towards saving and investing.”