Skip to comments.Retirement May Be Mission Impossible for Gen X (those born from 1965 to 1981)
Posted on 04/16/2012 3:15:52 PM PDT by NormsRevenge
As kids, they sat on gas lines in the backs of their parents cars. As young adults, they saw the stock market crash, and when it finally came time to settle down, they bought a house at the peak of the housing bubble and then were faced with the worst economy since the Great Depression. Its no shock that Generation X those born from 1965 to 1981 may get short changed in their golden years.
Though theyve watched parents and grandparents nestled with pensions, Social Security and strong economic growth, these are no longer guarantees. On the other hand, longer life spans with more medical bills and greater need for cash are the reality for many.
Gen X is the first generation to deal with the fact that the models of American retirement are changing and its members are flustered. The generation once called slackers has been true to form with retirement planning.
Gen X is a transition generation, says Carol ORourke, a certified financial planner and Executive Director for the Coalition for Debtor Education in New York City. Gen Xers were young during the tech bubble, and when they came of age, housing was a lot more expensive. With all the talk about whether Social Security is going to survive, there is a sense of not having something to look forward to.
According to a 2012 Insured Retirement Institute , IRI, report, only one-third of Gen Xers are "very confident" about having enough money to live comfortably during retirement, cover their medical expenses, and pay for their childrens higher education.
(Excerpt) Read more at finance.yahoo.com ...
This Gen-Xer will have no more mortgage in a year’s time. My husband and I are so close to paying it off, we can taste it!
You know, I have a theory that the reason they do that is that they confuse money with wealth. Money isn’t wealth. It just represents wealth. The maximum amount that government spending can justifiably be increased by is the growth rate plus the inflation rate. Anything more is either an expansion of the public sector, an increase in unaffordable debt, or an increase in inflation (or all three).
Of course, the wife then insisted on doing a masters degree and now we're back in debt again. Shucks.
I didn't really plan this out, but I've essentially “gone Galt”. If things keep going the way they are going, I'll have plenty to retire on by the time I'm eligible to access the money (anther 10 years or so). In the mean time, I'm working less than half time teaching at the community college and doing a lot of nothing.
And that $20,000 + in taxes that I used to send to the government every year? Well, nobody calls me an evil capitalist who doesn't pay their fair share any more.
Back on this topic, I “lived like noone else”, so I don't have all the stuff that folks with my kind of net worth generally have, but I built that net worth up on a relativley small income.
And every bit of it came from good parenting. I don't have kids of my own, but those of you who have these Gen X children, you have to model good behaviour to them. You can't depend on the government to do it for you.
Is your hubby a Gen-Xer or a Baby Boomer?
I was born in 1960; my current “hubby” was born in 1968 and all he can do is “bad mouth” baby boomers.
I think the difference is the way government has gradually taken over parenting. Gov’t has infiltrated the family basically outlawing traditional values, parenting, discipline and self-control/self-respect.
Replacing it with:
Encouraging single moms (replace dad with welfare checks or tax free for mom alimony aka child support checks via the divorce industry)
“Diagnosing” normal child behavior that just needs to be nipped in the bud by parental authority and instead encouraging mind bending, health endangering meds for said children (ADHD, autism, aspergers, ODD, anxiety) instead of good old fashioned discipline
Encouraging the “entitlement” mentality (in close association with ambulance chaser attorneys)
Discouraging child labor; chores are “abusive”
Sponsoring the phoney “self esteem” movement and “equal playing field” instead of encouraging excellence for each child.
Same here - we recently got 2.87% through our credit union for a 10 year. Payments are actually lower, but we're continuing to pay at the old rate to get out of debt sooner.
Many of us didn’t even make it to the cradle.
Roe v. Wade. 1973.
BINGO. I have NEVER EVER expected Social Security since I was a little kid...I grew up in the 80s with all the debt talk. We KNEW we weren't getting anything.
Meanwhile, the generation Xers will be quietly building up their own, *non-monetary* semi-retirement.
Double bingo. Marketable skills. Survival skills. Side businesses. Seeds. Land. Fruit trees. Plenty of kids.
If you're not Gen X yourself, my hat is off to you. You've really nailed what is going on.
Yes, spot on...
My hubby is between the two, he was born in ‘58. I was born in ‘67.
My parents are boomers who recently retired. I have nothing bad to say about any particular generation. There are good and bad of every age, and plenty of folks who rise above their circumstances.
Some of us opted out of the government system you described. We are home schooling our kids. I can’t wait to see what their generation does.
“And every bit of it came from good parenting. I don’t have kids of my own, but those of you who have these Gen X children, you have to model good behaviour to them. You can’t depend on the government to do it for you.”
Their is an old saying. Poor folks have poor ways. Our goal as a society should be to teach children good life strategies, including knowledge about money and good morals.
Bad morals is costing the Government hundreds of billions of dollars a year.
I have also see highly educated people (at least on paper), be very ignorant about money.
>>When the passions are obscure liberal arts, music and philosophy, getting a degree in those areas is a deep load of dumb debt.<<
I thought I implied that if you love what you do AS A JOB, you won’t work a day in your life.
I had a slew of meetings today — sadly, I had to work.. :(
TONIGHT I CODE!!!!
>>For us, it made sense to refinance to a 10 yr mortgage (its not that much more a month, but the house will be paid off alot quicker).<<
We paid off our mortgage in California about a year ago (15 year mortgage paid off in 7), but then decided to move to Texas. I could have paid cash for the new place, but with mortgages at 3% it is almost free money. We’ll pay off the 15 year mortgage in 6 years.
I’ve been doing that since June 2004.
Contemplate this - When the government spends a trillion-and-a-half dollars per year more than it takes in, eventually it’s going to run out of money.
False claim ... when you spend more than you take in, you are already OUT OF MONEY. This nation is far beyond just broke, and that by Cloward and Piven design don’tchaknow. Our 747 is out of fuel and the plane is nose down already. Would you say we’re still flying? I doubt it
The Weimar Republic didn't run out of money, either.
Or did they?
By the way, how many current workers does it take to pay enough in Federal income taxes to cover your pension?
The cusp between the Boomers and the X’ers is called “Generation Jones”. They were told that all the good stuff the Boomers got was waiting for them, “but when they got there, the cupboard was bare”, and so the poor Jones’ got none.
By the time the X’ers came along, the illusions were all gone, so they grew up expecting little or nothing. Which has turned out to be exactly the case.