Less Than 50% of Black Gen X Community Convinced They Can Retire By Age 70
New research shows less than half (44% ) of Black Gen Xers believes that they will be able to retire by age 70, new research shows.
This finding comes as 69% of Gen Xers overall would like to retire before age 65 but only 37% believe that will happen. The data is from a fresh study tied to an online survey paid for by Clever Real Estate. Americans born from 1965 to 1980 were quizzed about their personal finances and retirement plans.
The report included eye-popping statistics for Black Gen Xers. Only 10% have over $500,000 in retirement savings, though at least $555,000 saved is recommended. Some 21% report having no retirement savings, 29% are uncertain that they will ever be able to retire; 43% worry they will outlive their retirement savings; and 41% are concerned they won’t be able to afford housing in retirement.
Furthermore, most Black Gen Xers (60%) are saving less than 10% of their monthly income on retirement, though it’s recommended to save 15% in that time, while 25% of them say they have never saved for retirement. The most common regret among Black Gen Xers about their golden years’ plans is not saving up sooner (36%). That same amount has had to sacrifice their retirement savings to afford necessities.
Black Gen Xers should be concerned, as the findings indicate that many of them may not have enough savings to sustain their retirement, said Sam M. Huisache, data writer at Clever Real Estate.
She added that the combination of low retirement savings, lack of confidence in retirement planning, concerns about outliving savings, and concerns about affording housing during retirement shows that Black Gen Xers should be concerned about their ability to retire.
So, what actions should be considered or undertaken to help boost retirement savings?
“The best advice I can give to Black Gen Xers hoping to start or build up their existing retirement savings is to start now,” Huisache shared via email. She suggested asking your employer about any matching programs for retirement accounts. She noted 401(k)s, IRAs, and Roth IRAs are great options for anyone looking to get serious about their retirement, something that could help them maximize their savings.
Don’t be afraid to get professional advice! She said many major cities have financial counseling services available to their residents through local government or non-profits. For instance, Khan Academy has a free online course on financial literacy that anyone can take from the comfort of their home.
Moreover, Huisache maintained that Gen X should advocate for our country to have a more robust retirement program for American workers.
“For many, Social Security and Medicare are not sufficient programs to ensure that our retired workforce can afford a secure and healthy retirement,” she said. “25% of Gen X is actually worried that Social Security will run out, causing them to not want to retire.”
Check out more details about the overall findings here.