Nearly half of Gen X say they'll need a miracle to retire, study finds
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- Опубликовано: 11 сен 2024
- The oldest members of Generation X are turning 59, but a new study from investment bank Natixis shows a stark picture of how much money they've set aside for retirement. The study found the average retirement savings of Gen X households is only about $150,000, with nearly half of the participants saying they would need a miracle to ever retire. CBS News contributor Javier David has more on the study.
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I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either.
Got it! Buying stocks during a recession when prices are down could be a good move. You might get them at a lower price and sell later when they go up. Just do your homework and be aware of the risks before diving in!
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She appears to be well-educated and well-read. I ran a Google search for her name and came across her website; thank you for sharing.
Vivian is a scammer, she’s about to be put into jail. Fyi
I would never trade with someone that I heard about on RUclips
parents really need to start talking to their kids about money at an early age and not make it a taboo subject
money is taboo to the poors. my kids contribute to their roths after every teenage paycheck. we teach them to never tip more that 5$
@@dr_flunkstipping low is not how you get wealthy. Teach living below your means which means eating at home and seldoming eating out. If I eat out I am tipping 20%. More importantly I have invested 15% of my income since I was 22. That is how you reach 1 million in your early 40s.
@@samthompson6632 now i'm tipping just 4%. plus i'm way richer than you.
Thee military offers retirement at 20 years.
So, you never noticed that things just changed over the years? Not to be mean, but you are coming off as smug. Not only that, but savings require an income and sometimes people lose this through no fault of their own.
I'm happy I'll be retiring this year, with about $500k, but I'm afraid my portfolio will not sustain a long retirement. The funds are likely to be depleted by expenses faster than my portfolio can recover through compounding returns
I'm almost ready to retire, and having a financial advisor has been incredibly beneficial. Since I started investing later in life, I couldn't rely solely on compound interest from index funds. Nonetheless, I've managed to earn more than some long term investors. I'll be retiring with at least $5 million
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Live on less. $500,000 in good dividend stocks should net you $5000 to $8000 a month. If your house is paid off it is easy to live off that.
My husband and I start way too many sentences with “if we win the lottery…” 😂
😆
When Mike + The Mechanics sang "All I need is a miracle, all I need is you", I never thought they meant retirement!
Tell me you grew up in the 80s without telling me you grew up in the 80s😂
When the Butthole Surfers sang "I'm gonna move down to Florida, And I'm gonna bowl me a perfect game", I never thought they meant retirement!
My Boomer parents had a pension and Social Security for their retirement, and couldn’t teach me anything about IRAs or 401ks, since they had no experience with them. And my public school education during “Home Economics” only covered savings and checking accounts. We GenXer’s had to learn everything on our own, before easy access to information via the web like current younger generations. I remember buying Jane Bryant Quinn’s big book at a book store and subscribing to Money magazine to try to educate myself. Then we had the SP500 peak early in our careers in 2001 and not to hit that level again until 14 years later, so investors my age didn’t see big growth in retirement accounts until after 2014. It has been a heck of a ride and test of patience for Gen Xer’s!
This is a great point !! My father is Silent Gen and my late mother was a Boomer. they both grew up poor , so just living within your means and sticking extra $$ in a savings account was all they knew. We had to learn all this starting at ZERO . Also , most of us were making more $$ back in the 80's and 90's until the Reagan inspired trickle down started , not to mention we've been through TWO recessions which dragged a lot of us backwards. God knows I've made every mistake with money imaginable, but the world I came into after college is not the same one we're living in now and I'm worried all the "catching up" i'm trying to do for the past 15 years won't be enough. Won't retire until full age 67 unless something happens and can't work . I'll need that extra SS especially if they start cutting benefits. Of course SS would have been fine if congress had kept their hands out of the $$ to begin with....
This was my experience. My Ma was a single mother, no help from my father and she hustled and took care of us and did a great job but gave us the only knowledge she had which was save money. I did do that but you don’t get far ahead with just saving. I did good but it’s about investing and CD’s and Roth’s. I didn’t even know what that was. GenX was the perfect generation to get ahead financially, especially being ahead of social media, the 2008 housing crisis, the tech boom. But I just didn’t know any better.
I was lucky, as the learned about investing from the military, college, and friends. I learned that there was nothing better than making money without having to work for it. I was continually told growing up from my mother to pay myself first. I’m also very forward looking, so I understand the future will come and I didn’t want to be caught short handed. I plan on retiring in an about 10 years with more than enough money invested, but it really depends on inflation and the markets.
I wish that these studies would be realistic. What middle class American will ever have 1.5 million saved for retirement? I think these reports have most people asking themselves why to even try.
Most AVERAGE Boomers don’t have enough saved for retirement. But you can definitely retire on less than 1.5 million. The key is to have no debt at retirement and your home paid off
@@laurijohnson7754 And a modest lifestyle
@@laurijohnson7754 And plenty of passive income to live on.
Almost everybody that I know has millions saved for retirement. Asians tend to be frugal and live below their means. They also own multiple homes and invest regularly. Half of the people on the street drive newer and nicer vehicles than me. I just assume they make more and save more than I do. For me to purchase a $70,000 car, I would need to have at least $4 million saved to feel that it could be justified. I see many people driving Dodge Hellcats so they must all be multimillionaires.
@@mocheen4837 Why is $4 million the amount that you’d need to have in order to justify the car purchase?
My dad is 63 and retired earlier this year. He has about $400k to live off of for the rest of his life. He lives in a small town and the cost of living is very low, but it's still not a lot of money to depend on for the rest of your days.
If he lives another 30 years, that's just $33.00 a day (if not continually invested) and without social security. I am 65, have three times that amount saved, and still intend to work another 5-10 more years. I am more concerned about being destitute at 90+ than I am about working longer.
Your dad's 400k is a buffer, but basically any major car accident, medivac or other event could deplete much of that quickly. It is precarious, especially in the US where our medical care is so many times more expensive than the rest of the world.
If his Dad needs a medivac it's not like the hospital will take his home or garnish his wages
@@northerniltreeif you have $1,200,000 with social security you should be okay.
@@northerniltreeI'm 31 with $400k saved. I would have a heart attack if I only had $400k to live off today.
I love when these very wealthy people pretend that they won’t be able to retire comfortably 😂
Lol yeah news anchors aren’t rich, unless you’re like Dan rather or something
@@pensivepenguin3000 They’re not on a local news program but a national morning show in NYC. Something tells me they’ll be alright
My neighbor the other day talking about how this inflation is affecting the renovation of his cottage in Maine... Me: I was able to buy a pack of hand towels instead of the single ones this week.
Hard to save for retirement when 2/3 of Americans are living paycheck-to-paycheck.
Well maybe they shouldn't buy that brand new car they can't afford at $900/month or the 3 or 4 bedroom McMansion they can't afford or insert all the other things they spend their money on that they can't reasonable afford.
They are choosing to live paycheck to paycheck … (1) buying WAY too many things they can’t afford (2) not focusing on career growth over a long term
Maybe should earn more, live below their means
Start living below your means decades in advance.
Most people living paycheck to paycheck CHOOSE to do so. You need very little to be happy and comfortable. Don't come to me and cry poor while drinking Starbucks, driving a new model truck, and wearing designer clothing.
Proud Gen Xer here Too many people not thinking about paying their future selves. I’m 53, married 23 years, two teens. The wife and I have always contributed something to our 401ks. The past ten years we’ve been slowly increasing contributions. We’ve picked up some mutual funds along the way. We dollar cost average invest in those. Stayed in the same 3 bedroom 2.5 bath house for twenty years. Don’t buy new cars and take modest vacations every year. Six months emergency fund saved. Use cash back credit cards for everything (pay off in full every month. The bank pays me!) Current net worth 1.7M. We will be retiring at 59 1/2. Never underestimate the power of compounding interest. The time to start investing is today no matter how little or how much you can contribute. You must start now.
Kudos to you! 🙌🏼
Slow and steady.
They can take your 401k at any time they want. You could lose everything at any moment.
It's recommended to save at least 15% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 15% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time.
Effective personal finance management is more important than the amount of money saved, regardless of whether income is earned through job or investment. Individuals can seek counsel from a certified financial advisor to optimize financial outcomes, who can provide specialized advice and methods to decrease expenses and maximize income.
I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor, seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+ and I've netted over $2.8million.
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Finding financial advisors like Marisa Breton Dollard who can assist you on things like investing, insurance, making sure retirement is well funded, going over tax benefits, ways to have a volatility buffer for investment risk would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
Marisa has the appearance of being a great authority in her profession. I looked her up online and found her website, which I reviewed and went through to learn more about her credentials, academic background, and employment. She has a fiduciary duty to protect my best interests. I sent her an email outlining my objectives and also booked a session with her; thanks for sharing.
As a Gen X’er I prefer the Media and everyone to forgot about us , This is has been The status quo for decades and there’s no need to change.
Now Get Off My Lawn.
Yes , as genX as well , i get offended when i hear anything regarding to X( as a generation related ) coming out of their dd-irty big s-melly, corporative mouthpieces. The way they pretend to care about is offensive.
I'm not even sure if they're pretending, i guess they are actually laughing out about...
@@aquariumlife2929 You know what else is offensive? You Gen X folks pretending you ever cared about the next generation.
@@JohnDoe-pk2hs This was reply to a comment on a video of a corporation talking about a generation ( mine ) . I made a comment ( not a reply ) myself regarding this matter, if you care to look for and realise you're wrong is up to you, i'm not givin you in a silver tray...if you don't care , so do i...
Very true as a gen xer myself an the middle child of 5 siblings I was always sidelined
Luckily, not the case for me. I listened to Dave Ramsey, and I am debt free in a paid for house and well on my way to financial freedom. If I can do it, so can anyone else. Majority of people are living beyond their means even if they think they aren’t.
Yep, Dave Ramsey provides great advice for people wanting to improve their financial literacy.
Great going🎉 I also listen and follow Dave Ramsey. I am 53 and debt free, house included as a single mom. It is absolutely possible regardless of the current economy. ❤
Good for you. And, you are much more likely to have had the foundation to do so in the first place if you: Had a consistent place to live growing up, had an income of some kind, and didn't deal with caretaker abuse/addiction. It's very tempting to believe that we're much smarter or more disciplined than others, but sorry to break it to you - that's not the whole story.
Bro people come from insane trauma and do great. We have refugees that lost both parents and started companies and retired early. Your name should be no accountability.
why wouldnt sc be around???? THERE is your problem. Our ONLY problem.
I was a stay at Home mom with no money in my IRA or any savings of my own, which was scary at 53 years of age. Three years ago I got a part time job and save everything I make. After 3 years, I am 56 yo and have put $9,000 in an IRA and $40,000 in my portfolio with CFA, Abby Joseph Cohen. Since the goal of getting a job was to invest for retirement and NOT up my lifestyle, I was able to scale this quickly to $150,000. If I can do this in a year, anyone can.
Been debt free for two years thanks to Abby Joseph Cohen Services. So sad to see my friends in their 40s with car loans, mortgages and credit card debt.
Abby Joseph Cohen hooked me up with a late-stage fund that got me in on private shares of some hot companies before they hit the market or blew up. Those investments totally paid off when the companies went public and their stocks shot up. Now, I'm stoked because I'm heading into retirement with almost a million bucks in my portfolio.
Sick made up advertisement.
If it sounds too good to be true….. it is…..
the scammers are at it again. YT needs to clean up these comment sections.
I’m Gen X, and I remember being in high school and hearing that Social Security would not be around when I retired. It scared me to death, financially speaking.
I read as much as I could about retirement plans and how they work. And then started investing as much as I could into a 401(k) starting at age 23.
I had arguments with friends and family who wondered why I invested so much instead of just spending it and having fun.
I’m happy to say that I’m in my late 40s and already have enough to retire on, but I plan on working about 10 more years so that I can leave a sizable inheritance for my three kids. My wife and I are taken care of, now it’s about the next generation.
I am in the same boat as you. I feel as though everybody has more money than us. People drive fancy cars, take lavish vacations and eat out all the time.
Same but hey we will stop working by 60 and buy or do whatever we want. I rather do that then being old and eat cat food!
I’m not worried about leaving an sizable inheritance to my children. I raised them and helped them with college education. I have worked very hard as a nurse for over forty years. I plan on enjoying my retirement with travel, hobbies and volunteer work. I want to spend time with my children now instead of leaving them money when I’m dead.
That’s awesome! I love stories like this! Good for you!!!
The American Dream: endless struggling?
Yeah first world struggling. It's so bad. 😂
@@ryanwalters6184 It is for a lot of people in this country.
@@808zhu weakness
@@ryanwalters6184 Circumstance.
The American dream is still real. It just takes hard work and good choices....most of all sacrifices.
I love how they make it look it will only happen with genX.
I don’t think that’s the message
Right. At least we were able to buy houses.
Corporate media have been salivating to kick gen x in the teeth again.
@@creeper2054 Yes. And now we are ready to shine. Show others the path.
@@rickm8456 that was exactly the message. Use us as inverted scapegoats, distraction...making other generations think they still have a chance and placing the guilt omly on X ( ironically, the only generation tha made it ) , that was the underlines, the print stamp, cause they don't want other generations thinking as X'ers
For any 20-something watching this, invest in a 401K as soon as possible! The compound interest will pay off exponentially.
Once you are able, start investing 15% of your annual income.
I am a 35 year-old teacher from a single family household whose mom will likely never be able to retire. My 401K is projected to surpass $1 million mark by my mid-50's.
Start young, and always think ahead.
I have lost more money over the past 10 years with a 401k than was ever added to my account due to its success being dependent on the stock market which is controlled by the top 1% and was proven twice in the past year by the gamestop trade that was interfered with by the same 1% because they were losing money and the average person was making hand over fist.
So we are expected to pay 20%+ just in federal tax, 15% for retirement 5-7% for state tax not including social security, Medicare, etc health and other insurances. So that's around 50% total of your income just gone and we are expected to pay for a car, rent or house, food, clothes, and anything else. The math just doesn't add up
@@Methusalah0 The S&P 500 has TRIPLED in the last 10 years. You just seem to be extremely bad with money.
@chrisi2893 You took the words right out of my mouth.
@@Methusalah0Uh yeah. Let me see your budget, I’ll tell you what you can cut to make that happen.
This is all bullcrap - I am Gen X, worked almost 30 years... no pension, small 401K balance. I am retiring in 7-8 years. You know how? I bought my first house 25 years ago and paid it off in 20 years. I have no mortgage and no car payment. People waste so much money on cars, eating out and rent... money you are throwing away. It all comes to sound judgement.
Absolutely. The secret to being wealthy? Want less than you have.
It comes down to education as well. It’s good that you were able to figure this all out by yourself.
Gen Xer here too. You get it too. Glad to hear it.
you still have property taxes, you never own anything. We still have pensions at the company where I work.
Yes!! When I was in my 20’s most of my friends bought expensive cars and clothes. I always bought practical cars, pre-loved designer handbags, and put my money in my 401k. A 401k is not an option but a priority.
I’m 51 years old and I’m currently working a full time and part time job to pay off my mortgage. I live on a budget and I don’t have consumer debt. I’m a government employee with a full pension. My mortgage will be paid off by “2029” and I’ll retire in “2033”. Hearing these stories makes me grateful that I have a pension and smart enough to live under my means.
Im a similar age to you and a govt worker. YOu are quite fortunate ... nowadays we govt workers often dont make much money -- as we go without raises for years, like almost decades, etc. THIS impacts our retirement/pensions. At 19 years in, I finally make enough to start putting aside a bit of a savings. Managing to pay my house off by then might help me out -- but I was fortunate to get a bit of help with a down payment from seven members of my family -- many, many dont have the luxury that I had -- altho it was well in my mid-40s when that happened .... And my particular job is a college degreed job -- altho I believe everyone should get slight increases and stuff year to year like most jobs did in the 70s, like my dad's factory worker job when those were plentiful ... Good for you on your good planning - Cheers!
Young adults need to understand they MUST “pay themselves first” and automatically save
This is great advice for people who have at least some wisdom. There are too many who misinterpret that and are racking up some serious debt while paying themselves first. Some people have no concept of living within the means.
Yes. To elaborate, they need to understand that they enter the workforce with no gurantees and no safety net. We are all in a situation of survival. Too many people don't know how to survive.
The responsebility of creating the safety net is on everyone for themselves, so that is the first goal to accomplish, otherwise the odds of survival are low.
Yep! Invest as much as you can and start as soon as you make your first buck. Pay yourself first is the best advice ever.
As a 33-year-old millennial, I began investing in my retirement at the age of 28. I started modestly, allocating about 15% of my paycheck to my 401(k) and IRA. Initially, I invested in two S&P ETFs, VTI and VOO, and now my portfolio has grown to $150K. Even if I stop contributing today, projections suggest I'll have at least $1.6M by the time I retire at 65. The key is to start with whatever amount you can afford and consistently invest a portion of each paycheck, regardless of market conditions.
Is that projection adjusted for capital gains and inflation?
@@MichaelHalsell no such thing as capital gains for 401k or IRA money dude. Spend some time learning personal finance. Its the reason so many people are broke as a joke.
@@EricK-vw5wh as long as it’s a Roth IRA.
I’m similar age and about half your balance. We/you… will have much more than 1.6M in 35+years assuming a 7-8% rate of return.
@@rabidgoon don’t matter. You don’t pay capital gains taxes on 401k or Traditional IRA either. Any money you take out of those is taxed as ordinary income. Whether earnings or contributions.
How can you retire when the cost of everything is increasing at a phenomenal rate. Taxes are out of control!
Live below your means, invest as much as you can and be consistent with it. Plan to retire debt free. It’s possible if you live below your means and have a financial plan.
Don't worry that trickle will get down to the middle class any decade now.
ha 😂 ha.
it did already. can you spell stock market?
The wealthy didn't create any jobs, increase wages or lower consumer prices with their taxcut windfalls. They're buying up homes and making it more expensive for everybody else to live.
And it'll be warm and yellow.
it did. you had to invest in something. what did you invest in?
corporate people be like: excellent
i already retired. all you had to do is live under your means and invest. not hard.
Amazing how easy it is to get pretty wealthy. Buffet extols the power of compounding and he is right.
Nothing but excuses here. At some point you have to educate yourself
I'm on track to retire. I'll be worth 1,000,000 when I'm 40. Born out of trailer park, no college too. Live below your means and invest.
I'm 37 and getting close to 2 million in net worth, but you and I are not the norm; if 80% of students failed a class, the teacher or school would likely be held responsible. Similarly, eight are struggling for every two people who are doing well financially. The problem can't be solved by blaming small expenses like buying coffee.
@@DiegoMejia86 Agreed, it's not the coffee. It's the system. It is designed to get one to consume. The system benefits the people who invest into those consumer type companies.
As well people have a fear of losing money if they invest. Can't go wrong if you just play the whole market.
As for the 80 percent those people have a pain intolerance. They are more comfortable to be where they are as the anxiety of possibly doing better elsewhere is overwhelming as they lack the self confidence to go forth. When I was young I just had me to worry about it so that was an easy choice to make. Others in their 30s-50s are not so fortunate as they may have other obligations.
@@DiegoMejia86 Also good job homie getting to 2 mil.
I hit $3 million at 50, but plan to work until age 60. I can work until age 65 if needed though. I would have paid off both of my kids college tuitions by age 60. Until then, I will continue to max out my 401 K and utilize the catch up contributions as well.
@@mocheen4837 That's awesome! I'm happy for you to get to that!
"My life's transformation still astonishes me! From a modest lifestyle to earning over 78k monthly from investing in the financial market, I'm grateful for this incredible journey. My hard work, determination, and wise financial decisions made this possible. I'm living proof that dreams can become reality!"
I agree with you and I believe that the secret to financial stability is having the right investment ideas to enable you earn more money, I don’t know who agrees with me but either way I recommend either real estate or bitcoin and stocks..
I keep wondering how people earn money in financial markets, i tried trading on my own made a huge loss and now I'm scared of investing more…
@@rougeur Understanding your financial needs and making effective decisions is very essential. If I could advise you, you should seek the help of a financial advisor. For the record, working with one has been the best for my finances...
I’m Glad i stumbled on this. Please, if its not too much of a hassle for you, can you drop the details of the CFP that assisted you and how to get in touch….
@@rougeur I get guidance from *Susan Tori Davis* Most likely, the internet should have her basic info..
Instead of complaining about them, I listened to the boomers. never had a car payment, kept rent/house payment low, ate cheap food for 10 yrs. Allowed me to max out retirememt accounts for the last 15 yrs. Retirememt is now taken care of.
You must be really proud of yourself.
@@Tehui1974 when everyone else around me was making fun of me for years making me second guess it....yeah I'm proud of myself.
The segment ends with the financial expert saying, “financial literacy is important”. But, nothing that he said or anyone else even speaks to what that means. They complain about the cost of living is going up and inflation and that there is no money left to invest for retirement. They say nothing about even setting up a budget to plan so that you don’t live paycheck to paycheck. They say nothing about the fact that most people live far beyond their means. Don’t listen to this nonsense. Go over to the Ramsey Show where they talk in detail about how to turn things around and to be able to plan and get ready for retirement.
Ramsey is a quack.
I have been watching a lady on you tube who has challenged herself to live on $20 a week grocery budget she doesn't have to but it does allow you to focus on what you can do to save money each week towards your savings a example for me is I do not buy potato chips ever.. when I have something that you would normally pair with chips, I buy a 59 cents cucumber, slice it and sprinkle with salt I don't eat the whole thing in one sitting.. that saves me at least $4 in a weeks time to dedicate to savings. I make my own coffee never buy it if I'm out I take a coffee cup with me with coffee, same with drinks Water is what I drink most of the time ( using a Brita filter) there are a lot of little things we can do that save money and help achieve long term goals. Anna In Ohio
Live like a poor person because one day you'll be done living. Think about what you're saying to people. Think about that. What type of life is that??
Lmao avg is 150k wow and it's getting worse. Richest Country in the World bleeding its citizens dry.. nice
Best country in the world though!!!🤣
@user-zm6qj9cz7b so then what is social security. Surely that’s not a socialist program right? If you’re so anti-socialist, let’s start by getting rid of that.
@@cur244yeah, in mass shootings.
My dad said, “best to make money, but hard to live a life.”
Citizens are bleeding themselves. The government taxes labor too much in my opinion but other than that people have only themselves to blame. Even in today's crappy economy there is no reason why an able body person couldn't live comfortably and save for retirement, but instead most people CHOOSE to live above their means to show off and foolishly try to keep up with what they see on social media. Fools be fools.
As a young Gen Xer, I have always lived below my means, saved the excess and never had consumer debt and will be retired at 50. I played the long game early in my life and am ready to retire soon.
I'm a gen xer, didn't invest in my 401k until my late late 30s. But, I did invest in multiple multi-unit rental properties during the 2008 housing bubble. I'm lucky, my wife and I will retire comfortably.
This crisis is multigenerational. The majority of Boomers born in the mid to late 50's and 60's missed the boat on defined benefit pensions. Many younger Boomers got caught in the same retirement trap GenX is in. Younger Boomers are one of the largest growing demographics of seniors who are in poverty and homeless. Many weren't able to save enough for retirement due to low wage, no benefit, paycheck, to paycheck jobs that existed after global outsourcing that allowed them to survive, but not thrive. Now that they are in their late 50's to early to mid 60's, many find themselves unprepared for retirement even though they are aging out of the workforce. Many younger Boomers watched the retirement ladder get pulled up in front of them before they could ever put a foot or a hand on the rung.....
It’s not that they weren’t able to. It’s that they didn’t.
Quite literally Amir $300 a month invested over one’s lifetime can be worth a seven digits sum based on historic market returns.
People live balls to the wall paycheck to paycheck and then when they get to retirement age, they look for excuses .
S***, they'll need a miracle just to survive until retirement with the world falling apart.
All the financial literacy in the world would not have prepared us for this economy (over the last 2 decades), where corporations are treated better than people, the rich are not taxed remotely near their fair share, and the name of every CEO's game is increasing margins quarter over quarter forever. Higher education is much closer to maximizing profits across the board now. This in itself has put our generation and those after us into exponentially more debt than the Boomers had. THIS is why we're where we are - not simply financial literacy. Hold the rich to account! Close the corporate loopholes that allow them to write off everything while fighting to keep our wages unlivable!
Yes, financial literacy should be taught in public schools (as it is in many private schools), but also - none of this works when the rich hoard wealth!!!
We need more financial literacy taught, too many people find out too late they missed many years of compounding interest
“Retirement is when you stop living at work and start working at living.” Unfortunately No longer a reality
I am a millennial, my parents are boomers, they got pretty much wiped out early in adulthood with the interest rates being double digits under Carter. They didn't buy a home until their 30s. My teachers at school were mostly boomers and they were not buying vacation homes on teacher's salaries!
thanks for this useful information.
The high interest rates are how many boomers got their retirement money. If you were investing in the 80s you could get 15-20% on your savings!
The 401k plan is great for self disciplined people that prepare for the future, rather than always living in the moment. The problem is, it has become a fiasco because there are too many slackers that just aren’t going to save. These types have to be made to save in order for them to have anything when retirement age comes.
GTFOH, teachers were not buying vacation homes in the 60s. 😂😂😂
My parents taught me to save. Both blue collar as myself. At 56 i am retired and haven't touched my current IRA with 7 figures. Buy apartment buildings is the best advice i can give young people. Don't overpay and don't sell
I retired at 44 because I found the FIRE movement in my 30s and never bought a house and stayed debt free. Thank heavens
"401k plans were seen as a better option when they were created." No no no, they were marketed as the better option by those who wanted to eliminate pensions.
What is the median number? Average is not the best representation
It would be lower
All it takes is putting $200 per month into an S&P 500 index fund from age 25 to age 65 --> $1.1 million.
The problem with that is $200/mo (i.e. $2400/yr) was a lot of money in 1984. The median individual income that year was only $12000. So you're asking for 20% of gross income. Most people couldn't do that and thus most 65 year olds don't have $1.1M today.
@@ISpitHotFiyaa It’s an example. In reality, a person would put in less money in 1984, and more money later as their career progressed and they earned more. But keep making excuses if it feels good.
@@genxx2724 It's a terrible example. You picked some number that almost anyone could afford TODAY but which few people could afford in 1984. So who exactly is this example supposed to apply to?
As for putting in less money in the early years: those early contributions matter a lot more than the late contributions because of 40 years of compound interest. If they put in less money back in the 80s then they wouldn't have anywhere near $1.1M.
@@ISpitHotFiyaa keep arguing. In the meantime, others have set themselves up well. Have a good night.
@@genxx2724 Keep making ridiculous statements. In the meantime nobody is setting themselves up by following anything like your simplistic math.
even if you have your house paid off you think 'sweet no mortgage' but still you are paying at least 1/2 of it with Taxes and Insurance, and Property taxes go up 1-2 times a year so its hard to calculate that into a fixed income...stop taxing your seniors on their homes!
This is how Klaus will win when he states “You vil own nu-thing and like it”
Texas property taxes are going up so much. People don't realize how many are affected.
That and misc home repairs and maintenance especially the unexpected things like hot water heater going out, siding that needs replacing, foundation repairs from a shifting and aging home, etc etc
Then sell your house if you can't afford the taxes. 😢
@@m80mangg That’s exactly the long term strategy of certain leaders in this world - squeeze and force you to sell. It is part of the long term playbook … “you will own nothing - and - like it”
i don't know anyone that had vacation homes. what you talking about willis?
And that reference will only be know to us Xers 😂
A good place to start learning about retirement is the FIRE movement even if you don’t plan on retiring early. It taught me the importance of staying on a budget and saving and more importantly what and how to invest. It’s not to late for us gen Xers!
it's more fun to blame racists and boomers, besides i gotta look rich and i nnneeeddd that iphone 19. plus i need my nails pampered. because i'm worth it.
My savings went out the door because of heart attack several years ago.
Living on SSI
Only in the USA, I'm sorry that happened to you.
I wish I understood more about this when I was younger not because I am behind the curve per se but because if I would have understood the importance of investing and the power of compounding and ownership like I understand it now my net worth would be ridiculously greater now. This is something that our schools and most of our parents failed to teach us. Someone made a comment on a video recently that really struck me where they stated (I'm paraphrasing) how our school systems are designed to teach us to be an employee and not how to actually make money.
Looking at the spending habits of those around me, a lot of it is self-inflicted
It's called *Abolish Rent.* After that, you'd be ok, honestly. (We all would.)
We are the “sandwich generation “, helping our parents and over helping our children… mix that with heavy consumerism and lacking financial education. That about sums us up!
The middle and younger Gen X grew up in the peak of the tech madness.
These same people bought expensive cars, went on fancy vacations, and didn’t save a dime. No sympathy from me
Where does CBS get these imaginary figures?
The difference is back then it was possible to save but now days its to expensive to start saving early, invest, etc
Here's a tip. Invest in your health.
That’s what broke people say.
@@Needglory23this how dumb people think.
There's gonna be a lot of suicides as more of Gen-X arrives at retirement. 50 years from then they'll make a movie and everyone will be sad. But nothing will be done now and nothing will be done then. Greed, rampant, late-stage capitalism. Welcome to 'Merika
Early Gen X here. My boomer parents didn't teach me money - and I made stupid decisions. However we are also the generation who first made use of the internet. 10 years away from retirement and I can quit work today if I wanted. Why? Because I LEARNED and took RESPONSIBILITY. How about that? Stop blaming others.
Property taxes going up higher than raises in wages
Right? At 31 years old I have around $800/mo in property taxes on my cars and house I built a few years ago!!
Young Gen X here.
I already have tons in retirement.
You HAVE to get into a 401k and IRA, contribute a good chunk every single paycheck into an S&P 500 index fund, and NEVER EVER sell or rebalance. Ignore the broke fools and doom mongers: they will keep you poor.
Stop looking for excuses and stop putting it off.
I’m a Gen X person. I retired at age 55 from a government job. I now draw from my pension. I continued working as a dock worker and now pay into Social Security, 401K, and will receive a second pension when I retire again from that line of work (65). We have 4 grown children who are all independent. My wife and I own 2 homes (1 is a vacation home on the lake). We both manage our money as good as can be. We take our vacations every year and eat out at nice restaurants. Where there is a will, there’s a way. By the way, I read “Personal Finance for Dummies” at a young age and gave my kids the same book too! 🤙🏼
I'm pretty terrified tbh
GenX entered the working world when most employers were ditching traditional retirement funds and switching employees to 401Ks. It was and is a big change. I’ve seen my retirement portfolio have a few significant ups and downs, and that is not comforting
He said it well about reality being a factor. Ignoring reality will make life difficult for anyone. Shame on the parents for not telling their children that they would grow old and have to retire. This was considered common sense in my family.
Why do they keep saying you need 1.5 million? Does that assume you're still renting? What about those who own their homes, no debt and live reasonably? Still need 1.5 million? I don't think so.
It’s recommended to withdraw 4% every year so you don’t run out if you live another 25-30 years….. that’s only 60K a year if you have 1.5 million
@soniak2269 That still needs context. Are they getting 2800 or more per month SS payments? Do they have debt? Are they frugal in lifestyle to begin with? The same formula doesn't necessarily apply.
No excuse not to retire for Gen X. They had more favorable market and housing conditions, especially compared to Millennials and GenZ
No mention of Roth, Traditional IRA, Spousal IRA, HSA, or 529 accounts?
I am always amazed how they truly know how much people have in their retirement-accounts. I have 4-different accounts with different brokerages PLUS I have a defined benefit contribution AND a defined-benefit plan. I know "Pew" research and other research companies do not have access to those funds for statistical purposes. Because of those reasons, I don't trust any of these numbers, because it would be impossible to cross-reference accounts for each person.
Yep - too many people have jumped to different employers and would have multiple retirement accounts set up.
But it's a fun scare tactic for lazy Leftist journalists...
that's a great point. i have about 15 accounts ranging between 1.9m to 10k.
Aren’t they all opened with your social security number?
@@bmuseo Do you feel that private research companies have access to your SS#? Hmmmm (doubtful)
Stop paying $1000 for a phone or $5 for a latte or leasing a new car or eating out or expensive meat become a vegetarian stay home develop a hobby save money instead of spending it plan for the future instead of partying and playing video games
Wow. 150k is abysmal. Gen Z and millenials are saving more and more and it turns out they were the more responsible generation.
Gen X didn't have easy access to education of investing nor access to low cost index funds until the last 10 years. There are a lot more tools, RUclips videos, age based finds that didnt exist for us. We were stuck with high fee funds from the 2000's and 2010's.
@@danhowell3574 Speak for yourself. I learned in college in the early 90s that I couldn't rely on a pension or Social Security and would need to use a 401k.
Vanguard has been around for a long time. I was investing in their mutual funds in tiny amounts by the late 90s. Compounding interest did its work...
You might not believe it but there were print magazines that had great financial advice even before RUclips...
Wow! Great news clip. All you did was highlight the problems while providing NO real, concrete solutions. Just further fanning the flames of fear & desperation. Thanks!
Well hell, they don't have the answers. What do you expect?
There are no answers, because there is no real way to turn 150K into $1M in the 10-ish years most GenXers have left before they reach retirement age.
Clip wasn't for me (56). For my kids... Started saving in my 20s, yes my companies had a 401k.. Fast forward to today; we put in max contribution plus catch up, w employer match= 60k+ for the both of us. Wife and I will be fine. Start early and often.
Clip wasn't for me (56). For my kids... Started saving in my 20s, yes my companies had a 401k.. Fast forward to today; we put in max contribution plus catch up, w employer match= 60k+ for the both of us. Wife and I will be fine. Start early and often.
Yep! This is a terrible video clip. Didn’t explain why and said boomers are gen x parents- nope! Wrong!!!
Philippines here I come!!
I don't blame you.
My husband and I are 63 and were married in 1987, during one of the worst recessions in our history. There was never a pension option for us. The threat of SSN being decimated, along with the constant worry about layoffs, has been a constant our entire professional lives, longer than the working life of Gen X. We are technically “boomers” but have none of the perks of friends and family in their later 60’s and older. We have lived the 401K retirement life, and have the same concerns as those in Gen X.
I am one of the people they are talking about in this video. I could start drawing out of my retirement later this year. But paying for health insurance would cost more than all of my other living expenses combined. That I why I need to keep working until I'm 65.
Its not the Boomers its the education system who didn't teach Finances in school to the Gen X generation and even today kids have no idea how to "save" all boomer kids had a savings account, they started working as paper boys or babysitters when they were young and earning money. I am a cross between Boomer and Gen X my husband and I decided not to have children till we could afford them and focused on buying a home .. 7 years in to our marriage we bought our home and we looked closely at what we could afford not what we could buy, we looked all the time at living on one salary if we had to...did we make mistakes a long the way? Yes we did but we got up, dusted off our britches and started again. Today sadly alone now I own my home, I own my car and am debt free. The economy since Covid has crashed and burned and I don't know anyway of turning it around for the younger generation. I am leaving my home to a young friend who I hope will give it to one of her son's when they are adults so they can live debt free too. All I can do is teach what I have learned to the younger generation about how to be frugal. Anna In Ohio
Could have just titled this “nearly half of gen x made bad financial decisions”
I'm older Gen X, never been in debt, never owned a car, never owned property, just lived my life and steadily saved. A couple of points in my favor: except for a couple of years in California, I've never lived without comprehensive public health care, and I'm able to ride a bike to work. I think a lot of the problems identified here would be resolved if the US actually provided health care to all and made cities (where a lot of us work) more friendly to cyclists. Cheers, Guy
I’m scheduled to work until noon on the day of my funeral. 😂
I read recently that when 401k plans were first pitched, it was only for high income workers. It was never intended to be a plan everyone.
That is wrong, just plain deceitful. Ronald Reagan introduced the first IRA plans to provide for people who worked in companies that had little to no plan. These plans were for everyone, even the self-employed, like farmers, housewives etc. AND those plans were TAX free!!!! Which the unions and democrats hated and brought the taxes back. I know because I was a young union worker. Welder for almost 40 years. I invested in 401k and other things and retired good. It makes a difference what you believe. Who you listen to, and what YOU do. Dont throw your time/life away.
IRA plans were introduced in the 1974, well before Reagan became President. Reagan just expanded eligibility for what was already there. But Reagan removed the tax deduction for high income workers. Further, Social Security, which is a component of many retirement plans, started being taxed when Reagan signed the taxes into law. in 1984.
Gen X here - we won't have any problem retiring. It's all about finding a skill that somebody will pay you to do, and then saving some of that money they pay you for doing that skill.
Work all your life so you can spend everything you've saved on medical bills. Fun!
When discussing middle class people at the end, he listed two professions that still have pensions. :)
This headline is wild. Not even millions anymore to retire just a straight up “miracle”. This is sad
Yep another financial piece jumping on the 'Gen X are bunch of losers train. We appreciate it.
1 million, you’ve got to be kidding me. As a teacher I don’t make enough to pay off my 60k in student loans, let alone save a million .
Better have your house and cars(s) paid off as a bare minimum. You are going to need that payment money for other expenses. Also I would forget the kids college fund, let them pay for it like we had to. Time to get serious if you want to retire. I won’t be retiring because I’m going to keep working just to keep myself from spending money to address boredom.
lol yes you sure paid for your college didn’t you? You know that college costs so much now because the government has put less and less money into universities. Your university education was subsidised by the govt more so than students now.
Working your typical middle class jobs...
Boomers: Main home + vacation home
Gen-X- Main House
Millennials: No house for you!
People cant retire because they have overspent for decades on new cars, vacations, eating out, luxury goods etc. It’s not an income problem it’s a spending and expectations problem…
“Reality bites” best news pun in 2024.
Imagine going back in time to the 1980s and telling your young self that you won’t be able to save up to retire because you will buy everyone in your family a new laptop computer-equivalent every 2-3 years and car every 6 years; laptop purchases start at age 11. Every laptop will also require a monthly expense for a phone line.
Those are the averages for cell phones, and cost is roughly that of a laptop-can put it in more relatable terms to yourself that way though.
The 80s ask ... what's a laptop?
Education system did not set people up for a good relationship with money. Consumer mindset driven by advertisers and big business seek to take every dollar a person makes. Always the need to have something new or the latest gadget. One has to learn early to pay themselves first before spending a dime each month. This has to start in the 20s and build for 40 years. Compound interest can either work for you or against you.
Good. We need more people to keep working
A pension is not guaranteed. It’s a company asset. If the company goes bankrupt the pension disappears
Most of my Gen X friends retired at age 50 with average savings of $5-$10 million. Unfortunately, I am behind compared to them and will need to work until age 60. I also have a pension through work. I would work 65 hours per week just to be able to save for retirement and contribute to a 529 plan for my kids.