George Kamel - How Gen X's Retirement Crisis Will Affect You

Starting point is 00:00:05 Gen X, once known as the MTV Generation, is now apparently the retire-broke generation. That's right. Almost half of Gen Xers say they'll need a miracle to retire. So who's going to pay for all their prunes, men of Musil, and hard candy from Cracker Barrel? Spoiler, it might be you. In today's video, we're going to break down how Gen X got into this retirement pickle and how to keep their retirement crisis from becoming yours. But before we jump in, hit those like and subscribe buttons and share this video with everyone you know who loves REM and has never heard of BTS.

Starting point is 00:00:34 Yes. Tell me your Gen X without telling me your Gen X. Okay, so the oldest members of Generation X, formerly Generation Twitter, are turning 59 and a half this year. Now, normally, I'm not one to celebrate half birthdays. Seems like a bit much. But this one is significant because it's the earliest age that you can start withdrawing from your retirement account without penalties. But how much does Gen X have in that retirement account? Not very much. According to a recent survey, the median retirement savings for 55-year-olds is just $50,000. That'll last you a good, almost So how did we get here? Why is Gen X so ridiculously unprepared for retirement? Well, there's a few possible reasons. For one, there's inflation. More than two-thirds of working Gen Xers are concerned about reaching their savings goals due to inflation. And I get this one. Our dollars aren't going as far as they used to. But really, guys, you can't use this as an excuse for not investing for retirement. Number two, the decline of pension plans. Way back in the day, a lot of workers had a pension plan through their employer, and that was pretty much their retirement plan. Work at the same place for 40 years. and you piece out with a guaranteed income and a sad retirement party in the breakroom.

Starting point is 00:01:38 40 years of service for a sheetcake from Pigley Wiggly. Do better. No shade to Pigley Wiggly. This is on the boss. It's all your fault. As time went on, pension plans went away and were replaced by the 401K, which took the burden of saving and investing off of the employers and placed it on to employees. And Gen X is the first generation to rely on 401K plans as their main investment vehicle.

Starting point is 00:02:00 So they were kind of like the guinea pigs for this. They had to figure out on their own how much. they needed to save and invest, and then actually do it. And apparently, some of them not great guinea pigs. Number three, financial illiteracy. Now, to be fair, Gen X didn't grow up learning about how to handle money in school, and most likely didn't learn it from their parents either. They were too busy learning how to write in cursive,

Starting point is 00:02:19 which turned out to be a crucial life skill if you're a John Hancock impersonator. It's honest work. Honestly, it was a big hit at my daughter's first birthday party. Kids love cursive. I doubt that. In a recent survey, non-retired Gen Xers said they hold an average of 32% of their retirement assets in cash, which is not great. Because if that money's not being invested, they are missing out on the power of compound growth,

Starting point is 00:02:42 and their money is losing power every day thanks to inflation. Almost two-thirds of them said that this is because they fear losing their money, and nearly a quarter of them said they're not sure how to invest their savings the best way. That would be like not eating dinner because you couldn't decide between bojangles and rainforest cafe. Easy choice for me. I'm going to the jungle, baby. Hardest part, though, choosing between a tsunami cake or a sparkling volcano for dessert. That's a tough choice.

Starting point is 00:03:05 Speaking of disaster, you don't want your retirement savings to be heavily in cash. Take advantage of the power of compound growth and the tax advantages that come with investing in your retirement accounts. And pro tip, just because your money is in a 401k or a Roth IRA doesn't mean it's invested in anything. Remember, a retirement account is just an empty tax advantage shell. You've got to choose investments to purchase inside of it to turn that cold, sterile house into a warm wealth building home. Cozy. If you want to find an investment pro to help. you with this, check out the link in the description below. Number four, poor planning. According to the

Starting point is 00:03:38 same survey I mentioned earlier, 45% of non-retired Gen Xers say they have not done any retirement planning. Okay, this one's on you. I know you were all intentionally grunge in the 90s, but you're about to be accidentally grunge in your 90s. Look, if your plan is to rely on social security, good luck with that. According to the social security website, the average monthly benefit in August of 2024 was around $1,920 a month. That's approaching the poverty. And by the way, that's the average. Some people get less than $900 a month. That sucks. Number five, life circumstances. According to a survey by Experian, 74% of Gen X said they suffer or have suffered from, quote, financial trauma. Sounds a bit dramatic, but I get it. One part of this trauma

Starting point is 00:04:20 is that they're trying to financially support their aging parents and their kids while also trying to take care of themselves, which is how they got their nickname, the Sandwich Generation. They're stuck between Gen Z in an old place. Oh, I get it now. And while this might seem like a Gen X problem, their financial woes could easily become yours. Here's what I mean. Almost a quarter of 55-year-olds are banking on financial help from their family in retirement.

Starting point is 00:04:44 Looking at you, millennials and Gen Z. People are even using the term Silver Squatters, implying they might need to move in with their children. Not to be confused with Silver Squatters, the long-forgotten spinoff of Golden Girls. If you know, you know. And if you don't, it's because I made that up. But would I watch it? 100%.

Starting point is 00:04:59 And a lot of them haven't even broached the subject with their families yet. And here's a fun tip for you, Gen Xers. Bring it up at Thanksgiving. Hey, could you pass the green beans also? Can I move in with you? You got a spare bedroom I can move in, too? Now listen, all hope is not lost. I'll tell you what you can do about this,

Starting point is 00:05:13 but first, let me tell you what you can do about your data being passed around like a hot potato on the internet. And it starts with using Delete Me, one of the sponsors of today's video. You know all those weird, shady sites that sell your personal info for a profit? Well, Delete Me finds and removes your info from hundreds of these data broker sites, and they send you a report showing you what they did

Starting point is 00:05:30 and how much time they've saved you. And so far, have saved me 55 hours of time it would have taken me to do it myself, which is more time I can spend photoshopping fake posters. So help protect yourself from the risks of online scams and data breaches with Delete Me. Right now, you can get 20% off their plans by going to join Deleteme.com slash George or just click the link in the description below. Before we get back to GenX's money problems, let's talk about a better problem to have, where to put your savings. Whether you're stacking up cash for a used car, a down payment on a house, or VIP tickets to take your GenX

Starting point is 00:06:00 parents to see the RAM reunion tour, your money should be working for you. And for that, I recommend a high-yield savings account like the one offered by Laurel Road, one of the sponsors of today's video. They've got competitive rates, there's no minimum balance required to open an account, your deposits are FDIC insured, and there's no hidden fees. Lots to love here. Learn more by going to Laurel Road.com slash George or click the link in the description below. Okay, so what can you do about Gen X's retirement crisis? Well, if your parents are Gen X and they haven't spoken to you about their retirement plans, it's time to have the time. Talk. Not that talk. They know how you got here.

Starting point is 00:06:35 Yes, this conversation might be very uncomfortable, but it's very important. You might need to connect them to a financial advisor if they don't already have one, or talk to yours about how you can help. And decide how you and your family will or won't help support them. Be very clear about this. Maybe you and your siblings decide to help cover some of their expenses. Maybe you need to draw a boundary and stick to it. Maybe it's both. But talk about it now, because their financial problems can become your financial problems and you need to have a plan for it. if you're one of the Gen Xers still raging against the machine with little to no retirement savings, don't lose hope. There are still some things you can do to help fund your golden years. For starters, if you've been hanging on to debt, it's time to get rid of it. All right, it's going to lower your expenses when you get rid of those payments and allow you to retire sooner.

Starting point is 00:07:17 Next, if you're 50 or older, take advantage of catch-up contributions in your retirement accounts. By this age, hopefully you're making more than you ever have, so don't squander it. Put it to good use. Next, keep working. If you have a full-time job, you might need to delay retirement by a few years. so you can hang on to that steady and hopefully very high income and keep investing. The longer you invest, the longer you let it sit, the better off your nest egg is going to be. Next up, delay Social Security. If you wait a few extra years to claim Social Security, that could result in higher monthly payouts. It won't be much, but every little bit helps.

Starting point is 00:07:48 And remember, don't rely on Social Security for your retirement plan. Instead, look at this like icing on the tsunami cake. And last but not least, talk to a financial advisor. You don't have to do this alone, and they can help you make a realistic plan that works for you and your goals. And to all you young whippersnappers who still have decades of earning potential ahead of you, don't let retirement catch you unprepared. Okay, there's no reason you have to retire broke. Let this be your wake-up call to get your house in order and start preparing for your future.

Starting point is 00:08:13 If you want to see if you're on track for retirement, check out this video next to see how much you should have in your 401k by age. Or click the link in the description below. Thanks for watching. We'll see you next time.

George Kamel - How Gen X's Retirement Crisis Will Affect You

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