Generation Xers lack confidence in retirement

Generation Xers lack confidence in retirement


Save Story
Leer en español

Estimated read time: 2-3 minutes

This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.

SALT LAKE CITY — Recent reports say Gen Xers are feeling less confident about their ability to save enough money to retire. Some financial counselors in Utah say this is a big problem, since Gen Xers don't have the same retirement options their parents did.

CNBC is reporting only one third of people born between 1965 and 1981 feel very confident about setting aside enough money for retirement. They say housing market troubles, bursting tech bubbles and troublesome stock market values are affecting their confidence in saving for the future.

But Peterson Financial and Retirement Services owner Scott Peterson says Generation X is precisely the group that needs to set money aside. Otherwise, they're missing out on some valuable interest returns.

Preparing for Retirement
  1. Start saving, keep saving, and stick to your goals
  2. Know your retirement needs
  3. Contribute to your employer's retirement savings plan
  4. Learn about your employer's pension plan
  5. Consider basic investment principles
  6. Don't touch your retirement savings
  7. Ask your employer to start a plan
  8. Put money into an IRA
  9. Find out about your Social Security benefits
  10. Ask questions
Source: Dept. of Labor, more here

"One dollar invested at age 25 at a 7 percent rate of return, if we're calculating a 7 percent rate of return of interest on that money, is actually worth $8 invested at age 55," he explained.

Plus, Peterson says Gen Xers will have to be more self-sufficient than previous groups.

"One generation ago, you got a gold watch after 35 years of working with the same company, and you had a systematic monthly payment until you died coming from your company. That doesn't happen very often, anymore," he pointed out.

One thing Peterson says too few people are taking advantage of is their employer's 401k program. He says he sees people in their 50s who are kicking themselves because they missed out on free money their company was giving out.

"It would have been so much easier had they just started earlier," he said. Even if your company doesn't offer a matching 401k program, Peterson says there are other accounts people should take advantage of.


One dollar invested at age 25 at a 7 percent rate of return ... is actually worth $8 invested at age 55.

–Scott Peterson


"We have Roth IRAs now, which previous generations didn't have, where your money actually grows tax free," he said.

Despite all the financial doom and gloom Gen Xers have seen over the course of their lives, Peterson says most everyone can set aside 5 percent of their income. He says it all comes down to being systematic in taking out money from your paychecks.

Most recent Utah stories

Related topics

Utah
Paul Nelson

    STAY IN THE KNOW

    Get informative articles and interesting stories delivered to your inbox weekly. Subscribe to the KSL.com Trending 5.
    By subscribing, you acknowledge and agree to KSL.com's Terms of Use and Privacy Policy.

    KSL Weather Forecast