Members of Generation X say credit-card debt, unexpected expenses, and monthly bills are hindering their ability to save for retirement, a new survey from Schwab revealed.
The survey of 401(k) plan participants found that the typical Gen Xer thinks they’ll need $1.8 million for a comfortable retirement, but they saved an average of just $9,500 last year.
401(k) plans are a valuable, tax-advantaged tool for saving for retirement, but financial planners recommend utilizing IRAs and health savings account as well.
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America has a consumer debt problem and it’s hitting Generation X hard.
A new survey from Schwab Retirement Plan Services found that 42% of Gen Xers who have a 401(k) are more focused on paying off debt than saving for retirement right now. Schwab polled about 1,000 401(k) plan participants, including 368 Gen Xers, defined here as ages 39 to 54.
The Gen X respondents named unexpected expenses, credit-card debt, and monthly bills as their top reasons for not prioritizing savings. Many also said paying for their children’s college education or their own student loans are interfering with their retirement preparation.
According to data from credit-reporting agency Experian, the average …read more
Source:: Businessinsider – Finance