Panic Now and Avoid the Rush

I colleague sent me an article today from USA called "Debt-squeezed Gen X saves little" claiming that Gen Xers (people from 27 to 43) should be really worried about how little they save and about having enough money for retirement. With all the talk of boomers and millennials these days, Gen X seems to be the forgotten generation, so it's nice to see a story about them.

I'm no longer in the 27-43 age bracket, so I guess I can relax. But you be the judge if in the photo below taken in 1991 during my Disney Channel Affiliate Sales days, when I was 27, I looked worried about retirement .




But perhaps I was young and stupid. So should my favorite current Gen Xers - my wife and younger brother break into a panic? Consider the following response I sent my colleague below.

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I think one key mistaken assumption by the author is that the careen spans of Gen Xers will be the same as their parents. Gen X will live longer, but they'll also work much longer, and retire much later. They may be struggling to save at age 30, but they have a long time (perhaps another 40-45 years of working for the typical 30 year old) to save. In the future when the average person will live in good health into their 80s and 90s, and have second careers, 65 will no longer be the normal retirement age. Who would to retire at 65 and spend the next 30 years waiting to die?

So I don't think there's any reason for Gen Xers to panic now. There's plenty of time left to live, work, and save.

See the following from noted futurist Ken Dychtwald on boomers. It's only going be more evident with Gen X.

The New Retirement Survey offers a complex and illuminating preview of the kind of lifestyles, workstyles and recreation activities that boomers envision for their future. With guidance from noted gerontologist and author Ken Dychtwald, Ph.D., it offers unparalleled insight into the hopes, fears and motivations of this influential generation, as well as the coming impact on retirement, work, recreation, marriage, family, healthcare, housing, entitlements and the economy. Highlights include:


The new retirement "turning point." While 76% of boomers intend to keep working and earning in retirement, on average they expect to "retire" from their current job/career at around 64 and then launch into an entirely new job or career.


Taking advantage of their "longevity bonus," boomers will create a whole new life stage. Since Social Security established the "normal" retirement age at 65, life expectancy for a 65-year-old has increased by over seven years and continues to lengthen. As a result of living longer, this generation plans to be "younger" longer and work longer. Most boomers (65%) will stop working for pay and retire in the traditional sense at some point. However, that phase is more likely to begin in the late 60's, than at age 60 or 65.


Boomers reject a life of either full-time leisure or full-time work. When probed about their ideal work arrangement in retirement, the most common choice among boomers would be to repeatedly "cycle" between periods of work and leisure (42%), followed by part-time work (16%), start their own business (13%) and full-time work (6%). Only 17% hope to never work for pay again.