According to a new report from Retirement Living, "Retirement Preparedness Study 2019: Baby Boomers vs. Generation X", it appears that Baby Boomers are much more confident that they will have enough money to live comfortably in retirement than the Gen Xers following them.
According to the study, 75% of Boomers think that they will have enough money to live comfortably in retirement. This is at least partly due to the fact that Baby Boomers have more access to defined benefit pensions and the monthly income checks that accompany them in retirement. Boomers have also been more diligent to pay down or pay off debt, allowing them to more easily live within their means. Many were also early adopters a 401(k) plans and IRA's and accumulated money utilizing both of these tools.
However, only 35% of Gen Xers are confident about having enough money to live comfortably throughout their retirement years. Unless they are lucky enough to be a government or school employee, very few of them will have access to a monthly paycheck via a defined benefit plan when they retire. Many of them also carried student loan debt into their early adult years, hindering their cash flow and ability to start saving early for retirement. Many of them also have less confidence in the future solvency of the Social Security system than their predecessors do. Finally, due to advances in healthcare, many of them could face the blessing and the challenge that comes with longer life expectancies.
Regardless of your age or generation, the team at Impel Wealth Management stands ready to help you navigate your path towards a successful retirement. This starts with creating a financial plan that is built upon the unique assumptions and needs of you and your family. As Yogi Berra famously quipped "If you don't know where you are going, you'll end up someplace else." Once we determine what you want to accomplish and what you want to do in your retirement years, we can evaluate the resources available to help you start accumulating the necessary funds for your preferred future. This includes helping you understand your employer resources, government and Social Security benefits, and what you will need to do accumulate over and above this to meet your needs.
Financial planning is like a custom-made suit. It does not matter if it fits anybody else, it only needs to fit you and your family. We look forward to helping you create a custom-tailored plan for you and your family so that we can keep "Moving Life Forward" together.