Who’s Most Worried about Retirement: Baby Boomers, Gen Xers or Millennials?

Everyone has dreams that they want to see fulfilled, especially once they are in a position to start earning and thinking about how they will spend their money. The only problem is most of them think in the now and choose to worry about the future later. Be it the baby boomers, Generation X or the millennials, all have fallen prey to this time and again, at the cost of an uncertain future in terms of their financial stability as they near retirement.

Generations X and millennials were hit the hardest by recession, and hence have realized the importance of saving for their future home, career and retirement. Tackling savings is a unique ball game, and one that everyone has to deal with eventually or suffer the consequences, especially since the economy has seen exorbitant increase in prices of everything, from commodities to property and healthcare.

Understanding the need to save is equally important as achieving your dreams, in fact the readiness to save will only get you closer to that day. Let’s take a look at how “retirement ready” different age groups are, and how you can boost your savings!

Generation X Retirement Readiness

• Their SavingsBeing hit by recession can do wonders in programming the mind and bringing out the innate need to save for a better future, which holds true for Generation X. A majority of this generation has been saving funds for the future, and especially for retirement. They had a tough hand dealt to them with the dot com crash and the recession to face with parents and children to provide for, but this only seems to have contributed to the financially savvy outlook they display.

• Their DreamsConsidering this is a working generation, their dream is to be able to continue contributing to either the family or to society as a whole. For generation X, constant stimulation is key (both mentally and physically), for they have been wired that way, or at least most of them have. Hence, a majority of this generation chooses to continue to work part time (even if it’s merely consulting) post their retirement.

Generation Y Retirement Readiness

• Their Savings
  
  Having seen the previous generation suffer and work continuously to meet every day requirements, generation Y (also known as the millennials) has been programmed in a manner that scares them. This generation has developed phobias like no other: they fear relationships, career disappointments, mostly rejection and failure. This trickles down to their saving habits, as they believe in living life now and worrying about the future later, and so they find themselves in debt with little to no savings.

• Their DreamsThe dream of this generation is to work less and relax more as they get older and near their retirement. A majority would rather toil away for 10 to 20 years and then retire and live off what they have managed to save, plus work a little every now and then to make ends meet. Most of them are unemployed and rely still on their parents to pay their bills, for they would rather do what they love doing than work away at jobs that leave them dissatisfied.

5 Ways to Boost Retirement Readiness for Generations X and Y

Here are some simple tricks that will help you ensure a comfortable retirement:

• Consolidation of Investments
  
  Begin by consolidating 401(k) accounts to help keep an eye on the funds being saved for retirement. This helps to keep things simple and easy to balance, in terms of the investment mix. Also consider IRAs, for they too can offer solid returns.

• Calculate the Amount You Will Need for Retirement
  
  Cautiously calculate what you will need for your retirement, and do it regularly in order to reach realistic figures, for it is necessary to be aware of where you are headed in order to prepare for what’s to come.

• Strive to Contribute More to Retirement Accounts Every Month
  
  Saving is essential for a comfortable future, and taking a step closer every now and then by saving more (as you age or gain in terms of increments), will make a world of difference, when it all adds up as retirement gets closer.

• Evaluate Your InvestmentsIt’s important to stay true to your personality when choosing the kind of investment portfolio you acquire, so that market fluctuations do not affect you drastically. However, remember to keep an adequately diverse portfolio to get the maximum out of your investments.

• Learn to Rely on Yourself and You’ll Be Retirement Ready in No Time!It’s highly unlikely that one day your bank account will be loaded with more funds than you can spend. Learn how to rely on yourself and save adequately for your retirement starting now, instead of dreaming of that day!