Individuals in their 40s and 50s, commonly found in the age group denoted as “Gen X,” should prioritize retirement planning as they grow closer to the age of retirement. For many of these individuals, saving and investing for retirement has not been as high a priority as it should have been, but there is still time to adequately prepare for what is to come. Below are a few considerations to make when thinking about your retirement.
Consult a Financial Advisor
A large percentage of individuals in Gen X have not talked to a financial advisor regarding their finances. While utilizing a financial advisor’s services could be dismissed as a frivolity in order to save some money, for individuals who don’t have a concrete grasp of their finances, retirement plan(s), or investments, this step is crucial. Those who haven’t devoted much time to thinking about their financial situation or future should strongly consider connecting with a reputable advisor in their area to discuss how they should proceed in order to procure a secure future.
In generations past, relying on Social Security checks was feasible. This course of action wouldn’t support a lavish lifestyle, but it was sufficient for those looking to make ends meet. However, it is projected that Social Security funds could be depleted by 2034 if not before then. As a finite resource, Social Security funds will need to be stretched in order to account for an increasing population of retirees, meaning that this money could run out more quickly than we think. Relying on Social Security is not an option for anyone who isn’t already retired, so making plans with this in mind will be key.
Plan for Longevity
Life expectancy is continually rising, which means that pensions and other retirement plans will not last as long as they previously did. Individuals who are in their 50s today have a high likelihood of living well beyond age 80, which means their retirement funds will need to provide for their needs and lifestyles longer than ever before. One of the best accounts for this purpose is a Health Savings Account, so starting one now is a great idea.