Colorado financial expert offers advice as only 1 in 5 Gen Xers ready for retirement
Your golden years are a time for enjoying the fruits of your labor, but a new national study from Prudential Financial shows Gen Xers are struggling to get there. Roger Reynolds, CEO of Reynolds Financial Group, says clients here in Colorado approach him with this problem frequently.
"Of Gen X, those that are about 55 or have about 10 years till they retire, only about one in five are financially ready. That's 20%. About half of them say it would take a miracle for them to retire on time," said Reynolds.
That study also revealed most people have about $150,000 saved in retirement. That's far from the $1.5 million Americans say they need to retire comfortably.
"They need to have about 8 times their annual salary in retirement savings already," said Reynolds.
There's a lot to consider and navigate while approaching retirement, like potentially retiring early. "Some people just plan to work and work and work till the day they die, but the reality is over 80% of Americans end up having to retire earlier than they planned."
When you do make it to retirement, Reynolds says there are options to make it easier.
"A recent study found that 25% of Gen X individuals plan to rely on family members for their financial support for retirement – it could be a parent if they're still alive or it could be children – that's becoming more and more common. (You also) might want to consider a part-time job or a new career path during retirement, at least to cover the housing expense. That can go a long way. Aside from that, invest properly, make sure you're working with a financial planner that can help you make the right decisions. Make sure you know what you're doing with social security filing. Make sure you're maximizing your financial plan."
The U.S. Department of Labor also has a breakdown of how to prepare for retirement.
Top 10 Ways to Prepare for Retirement by CBS News Colorado on Scribd
