Generation Xers Can't Afford To Retire?
Some Say Baby Boomers Gobbling Up Social Security
POSTED: 5:21 pm EDT April 17,
2008
UPDATED: 6:00 pm EDT April 17,
2008
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BOSTON -- The tough economy is taking a toll on retirement. With prices hitting all-time highs, Generation X doesn't know if it can afford to stop working.NewsCenter 5's Kelley Tuthill reported that Stephanie Harvell enjoys planting flowers outside her Natick home. The 41-year-old and her husband, Keith, said that they work hard to have a good life for their 7-year-old.
VIDEO: Generation Xers Can't Afford To Retire?"We live day by day. My husband works during the day, and I work at night," Harvell said. "It's mostly about what we need to do right now.The Harvells do their best to contribute to Keith's 401k but with the high cost of living, it's tough to save.A new study shows they are not unique when it comes to Generation X and retirement. Twenty-one percent have no money saved, 40 percent have put away less than $25,000, yet many 27 to 42 year olds hope to retire on $1 million to $5 million."There's an element of wishful thinking that somehow it's going to magically happen. If they rely on the government or their companies they will be disappointed," Babson College's Peter Cohan said.A Scottrade study found that Generation X is pessimistic about retirement, with 31 percent believing they will never be able to stop working, while most Baby Boomers believe they will be able to retire and not worry.Some experts say Generation X is in the middle of a retirement perfect storm."Baby boomers are sucking the oxygen out of Social Security. It's a huge issue," Cohan said.Cohan said that Gen X-ers should regularly contribute to an investment fund and keep high-interest debt low.The Harvells said they're doing their best despite tough economic times.
VIDEO: Generation Xers Can't Afford To Retire?"We live day by day. My husband works during the day, and I work at night," Harvell said. "It's mostly about what we need to do right now.The Harvells do their best to contribute to Keith's 401k but with the high cost of living, it's tough to save.A new study shows they are not unique when it comes to Generation X and retirement. Twenty-one percent have no money saved, 40 percent have put away less than $25,000, yet many 27 to 42 year olds hope to retire on $1 million to $5 million."There's an element of wishful thinking that somehow it's going to magically happen. If they rely on the government or their companies they will be disappointed," Babson College's Peter Cohan said.A Scottrade study found that Generation X is pessimistic about retirement, with 31 percent believing they will never be able to stop working, while most Baby Boomers believe they will be able to retire and not worry.Some experts say Generation X is in the middle of a retirement perfect storm."Baby boomers are sucking the oxygen out of Social Security. It's a huge issue," Cohan said.Cohan said that Gen X-ers should regularly contribute to an investment fund and keep high-interest debt low.The Harvells said they're doing their best despite tough economic times.Copyright 2008 by TheBostonChannel.com. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
