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This percentage is truly alarming as there will be people belonging to Generation X who will retire without having sufficient money saved up for retirement.
Generation X has an excuse for not saving money for retirement. They say that they are spending money on children’s education buying a home as these are bigger priorities for them than saving up money for retirement.
It has also been seen that many people belonging to Generation X do not have knowledge about investing and they cite this as a reason for not saving. Although this generation is tech-savvy and has a forward-looking mindset, they still seem unaware of investment facts. However, the internet can take of this lack of knowledge.
One of the best Generation X retirement plans is 401k where the money is directly deducted from the paycheck and the person does not see this money so will not miss it. This one of the most reliable retirement savings plans in the US. But in order to ensure that they have sufficient money when they retire, Generation X has to make an endeavor to contribute more than they normally would.
Although Generation X has low savings rate, they are young enough to rectify this mistake. They should make an effort to safe more using retirement savings plans like 401k, IRA or any other plan that is available to them. They can invest in mutual funds and stocks quite aggressively to ensure that their investments pay dividends when they retire.
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