Gen Xers Stress More About Retirement Than Credit Card Debt
Schwab Retirement Plan Services recently conducted a survey to see how financial burdens vary between generations. The research pinpointed a strong struggle among Generation X: whether to pay off credit card debt or save for retirement.
Gen X is comprised of adults between the ages of 39 and 54. The average age of retirement in America is currently 59.88 years old. However, increases in the cost of education may force many Americans to retire later than expected.
The Schwab study revealed that 58% of Gen Xers are focused on their retirement savings, but the remaining 42% are worried about paying off credit card debt. When asked which factors have halted their retirement savings, Gen Xers cited unexpected home repairs as a top concern (38%). This was followed by credit card debt (31%), monthly bills (29%) and paying for their children’s education (21%).
With regards to stress, 40% of Gen Xers said saving for retirement was their biggest worry. Another 27% said credit card debt was their primary stress point, followed by paying monthly bills at 23%.
On average, Gen Xers contribute $9,499 per year to their 401(k) plans. This is roughly half of the 2019 IRS contribution limit of $19,000. Typically, $1 million is considered the ideal savings amount for retirement, but Gen Xers believe that $1.81 million is what’s necessary for a comfortable retirement lifestyle.