PHILADELPHIA (KYW Newsradio) — The oldest members of Generation X — people born between 1965 and 1980 — are approaching retirement age, but many don’t have the savings to leave the workforce, according to a new study by the National Institute on Retirement Security.
In fact, as Gen Xers approach 65, 40% don’t have any retirement savings at all. The average household has a maximum of $40,000 saved.
Bergette Rogers falls into that category. She does not expect to be able to retire from her job as a cashier at Philadelphia International Airport any time soon. “The wages they pay you don’t compensate for the hard work that you do and the hours that you put in.”
According to the study, many working Gen Xers have personal retirement accounts, but 39% of men and 42% of women have zero balances in them.
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“It’s not surprising,” said Mark Zandi, chief economist with Moody’s Analytics. “I think this issue is a problem for all generations but particularly worrisome for this next generation that’s fast approaching retirement.”
The youngest members of Gen X are at least two decades away from retirement. Zandi said there’s time to make moves to better set themselves up.
“The key thing is no credit card debt because the interest rate you’re paying on that is extraordinarily high,” he advised.
The study also highlights the importance of Social Security benefits but finds a large portion of Gen Xers think the program will go bankrupt before they become eligible.
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