This article is reprinted by permission from NextAvenue.org. For decades, many American workers could plan on roughly 40% of their retirement needs being covered by Social Security with another 60% covered by traditional pensions and savings. But people approaching retirement today face a different reality.
Traditional pensions have declined significantly since 1985, and Social Security trust fund reserves could be depleted by 2033, making the idea of benefit increases, even for middle class folks who have worked hard all their lives, highly unlikely. This means that Generation X — people between 43 and 58 and thus the cohort next in line to retire — and all future generations will need to plan differently for their retirements. As future retirees confront a landscape with less support from traditional pensions and increased reliance on defined-contribution plans like 401(k)s and 403(b)s, the combination of inflation, capital markets volatility and outdated approaches to financial planning only make things harder. If we don’t act, retirement security could become nothing more than a “pipe dream” for many. However, having weathered the 2007-09 recession and the economic impacts of the pandemic, Gen X is resilient, self-motivated and resourceful. I’m proud to be part of this generation myself. We have the opportunity to lead the way in redefining what the future of retirement looks like in America.We have work to do According to a recent Prudential study, nearly half (46%) of Gen X — up to 30 million people — do not think they will have enough saved to live comfortably in retirement. And 58% of Gen X members — roughly 40 million Americans — say they will rely on their Social Security …
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