Page 1 of 4 123 ... LastLast
Results 1 to 10 of 33

Thread: Gen X is the 401(k) 'experiment generation.' Here's how that's playing out.

  1. #1
    Join Date
    Jun 2017
    Location
    Tennessee
    Posts
    2,323
    Feedback Score
    0

    Gen X is the 401(k) 'experiment generation.' Here's how that's playing out.

    https://finance.yahoo.com/news/gen-x...100010909.html

    Generation X has been the alpha tester for the 401(k) retirement system, and the gloomy results are rolling in.

    In many ways, Gen X — those born between 1965 and 1980 — has led our nation’s experiment in the shift away from a pension system to a 401(k) system, requiring individuals to save and prepare for their own retirement.

    "They are the first generation to rely primarily on their own individual savings through 401(k)-like plans, and therefore, we refer to them as the '401(k) experiment' generation," Ceder said.

    While pensions are still the norm for public-sector state and municipal employers, they have all but vanished in the private sector.

    Today, just 11% of private employers offer pensions, compared with 35% in the early '90s. More than half of private-sector employees have a 401(k) plan, according to the Bureau of Labor Statistics.

    The reality for Gen X has increasingly been noted in financial industry reports. For instance, Gen Xers say they will need, on average, $1.56 million in savings to retire comfortably, but to date, they have saved only an average of $109,600. More than 1 in 3 Gen X workers have dipped into their savings or taken out a loan to pay for monthly bills.
    Religion is doing what you are told no matter what is right. Morality is doing what is right no matter what you are told...

  2. #2
    Join Date
    May 2011
    Posts
    15,639
    Feedback Score
    2 (100%)
    And how much of that can be blamed on the changing retirement system and how much of it should we write off due to people having no future economic planning or self control when it comes to spending?

    As a Boomer I set mine up and maxed it out early, when I worked overseas I fed that 401K like a pig, when I retired I pooled my 3 retirements to live off of and paid off a new Truck and my House with the 401K.
    I also set up Company 401K's for several Friends.

    Of course as soon as Biden was about to take the Helm, I cashed out completely.

  3. #3
    Join Date
    Mar 2010
    Location
    Durham, NC
    Posts
    7,000
    Feedback Score
    23 (100%)
    Quote Originally Posted by Averageman View Post
    And how much of that can be blamed on the changing retirement system and how much of it should we write off due to people having no future economic planning or self control when it comes to spending?

    As a Boomer I set mine up and maxed it out early, when I worked overseas I fed that 401K like a pig, when I retired I pooled my 3 retirements to live off of and paid off a new Truck and my House with the 401K.
    I also set up Company 401K's for several Friends.

    Of course as soon as Biden was about to take the Helm, I cashed out completely.
    Ironically 401ks are doing as well as they ever have, thanks to inflation. My return right now is just through the roof. Of course we know what's going to happen when there's a course correction.

  4. #4
    Join Date
    Jun 2006
    Location
    CONUS
    Posts
    4,218
    Feedback Score
    6 (100%)
    Quote Originally Posted by Averageman View Post
    And how much of that can be blamed on the changing retirement system and how much of it should we write off due to people having no future economic planning or self control when it comes to spending?
    Many people I know don't know how to save and control their spending. Many don't contribute the max pre and post taxes to their retirement. Some only contribute up to how much their company matches; no extra.

    I'm lucky that my wife is smart planner financially and a good saver. I'm a few years off from retirement - 5 or 6 years, but our house was paid off 14 years ago, our cars were paid in cash, and we're still both working. Long term health care is going to be the big worry. Dementia, Alzheimer's, assisted living...all those are $$$.

  5. #5
    Join Date
    May 2008
    Location
    Colorado
    Posts
    17,523
    Feedback Score
    0
    And if you end up not hitting the age/service target to retire? You’re screwed.

    Inflation goes even a bit higher? It decimates your lump sum pay out.

    So few people are left on retirement plans that pay out periodically that if things hiccup, they won’t bail them out. After the GFC didn’t the unions pensions get saved, but the white-collar workers got screwed?

    Either a company will underfunded, pension plan, or people won’t put enough into a 401(k). There’s really not a fix to that. The really bigger issue is is that a long-term health of our economy is not looking good. A healthy growing academy has plenty to be able to support people in retirement. That’s not the way we’re going.
    The Second Amendment ACKNOWLEDGES our right to own and bear arms that are in common use that can be used for lawful purposes. The arms can be restricted ONLY if subject to historical analogue from the founding era or is dangerous (unsafe) AND unusual.

    It's that simple.

  6. #6
    Join Date
    Dec 2006
    Location
    Tennessee
    Posts
    11,980
    Feedback Score
    0
    Quote Originally Posted by chuckman View Post
    Ironically 401ks are doing as well as they ever have, thanks to inflation. My return right now is just through the roof.
    Next March is the earliest I can use my TSP (the .gov 401K, not for you chuck but those who might not know) without the 10% penalty. I probably will buy a SPIA to get "lifetime income" of XXXX per month, and with interest rates still high it will be tempting not to wait longer and just do it. The SPIA monthly amount won't go down because of interest rates, but it will never go up though so inflation will be more painful as time goes on.

    To the point of the thread, I am a first-year Gen X'er. The above-mentioned retirement I paid into will only comprise a portion of my total retirement funds. The suggested $1.56M in a 401K ain't happening! Of course going into retirement with house and vehicles paid off will help lower the amount you "need".
    11C2P '83-'87
    Airborne Infantry
    F**k China!

  7. #7
    Join Date
    Jan 2014
    Posts
    404
    Feedback Score
    0
    Quote Originally Posted by militarymoron View Post
    Many people I know don't know how to save and control their spending. Many don't contribute the max pre and post taxes to their retirement. Some only contribute up to how much their company matches; no extra.
    Wished we had a like button for stuff like this.

  8. #8
    Join Date
    May 2008
    Location
    Colorado
    Posts
    17,523
    Feedback Score
    0
    If we take the college school loans as any kind of model, though they will probably start to compensate the people who didn’t save. Probably along the lines of taxing the 401(k)s and IRAs of people who did.
    The Second Amendment ACKNOWLEDGES our right to own and bear arms that are in common use that can be used for lawful purposes. The arms can be restricted ONLY if subject to historical analogue from the founding era or is dangerous (unsafe) AND unusual.

    It's that simple.

  9. #9
    Join Date
    Feb 2016
    Location
    North Alabama
    Posts
    5,316
    Feedback Score
    19 (100%)
    It's not realistic to expect every worker to max out pre and post tax contributions every year they work, nor do they need to. If employees contribute about 8% and their employers 4% for their working lives, they should be able to retire as comfortably as their parents did with a pension. Ironically, 12% is what the employee and employer kick in for Social Security and the worker gets peanuts...

    I plan to have $1M in my 401K and retire by age 60. Unfortunately, inflation has made $1M a lot less meaningful than even 5 years ago. Im not really worried, I have never been wealthy and have mil retirement, disability, and eventually social security pensions as well.

    Most of the workers my age (55) do not contribute as much as I do to 401K, some contribute significantly more.

    Andy

  10. #10
    Join Date
    Jul 2009
    Posts
    34,288
    Feedback Score
    3 (100%)
    Add to that there is so much that is out of the average persons control with 401ks. When the housing market crashed almost everyone I knew took something like a 50% hit on their 401k. You might call it investing, but if it can go up and it can go down, it's gambling...no different than Vegas. Some games have a better probability than others, but it's still gambling. And if you aren't somehow on the inside, you are on the outside and the house usually wins.

    My 401k is in my gun safes and I've done better than most people I know. Not sure if it will be worth a million when I need it, but in my zip code I don't think I will need that much.
    It's hard to be a ACLU hating, philosophically Libertarian, socially liberal, fiscally conservative, scientifically grounded, agnostic, porn admiring gun owner who believes in self determination.

    Chuck, we miss ya man.

    كافر

Page 1 of 4 123 ... LastLast

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •