Gen X May Be Poor X

I know I’m getting on in years when the first wave of the MTV generation or Gen X, will turn 50 next year.

That makes me, what? Well, never mind.

In any event, this week I attended the AICPA’s Technology and Practitioners Symposium where a number of sessions were devoted to attracting and retaining Millennials. So much so in fact that one could easily forget those who fall in the age demographic between the Baby Boomers (me) and the employee of choice these days, the Millennial.

And now that the folks who comprise Gen X, or the grunge generation, have evolved  from lip synching “Rock the Casbah” and “Hungry Like the Wolf” to mid-career workers with children of their own, they’re also facing the prospect of having a bleak retirement.

According to a study by Northwestern Mutual, Gen Xers apparently have the worst financial habits of four generations surveyed and in fact, have the potential of  earning the dubious distinction of the generation that has more debt than savings – between juggling mortgages, educational debt and, of course, lifestyle spending.

According to the survey, nearly 40 percent admitted to “not at all feeling financially secure” and roughly 25 percent felt “not confident” about reaching their financial goals.

And it doesn’t bode well that Gen X may be the ones on the leading edge to feel the unwelcome brunt of the rapidly depleting funds of Social Security which according to a number of studies – including researchers at Harvard and Dartmouth, are projected to dry out by 2033.

More than one third currently has trouble meeting their monthly mortgage or rent obligations while another 25 percent have ceased putting money into a 401(k) or IRA altogether.

As a result, Gen Xers median savings has plunged about 15 percent over the past two years from just over $70,000 in 2012 to just under $60,000 today. And just over 40 percent have less than $50,000 saved for retirement.

And I don’t have to be an economist to tell you that will not go very far.

The good news is that Gen Xers have more time to catch up than their Boomer parents. When they reach 50, the “catch up” retirement contributions allow an additional $1,000 to be placed in an IRA and $6,000 in 401(k) s.

Here’s hoping the situation improves or many will be singing a song from my generation – The Kinks’ classic “Low Budget.”