Generation X, the generation between the larger baby boomer and millennial generations, tends to get overlooked when it comes to older age groups. However, Gen X makes up a whopping 20% of the population.
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Also notable — the older members of Gen X, born between 1965 to 1980, are quickly approaching retirement age. However, many are not financially prepared, according to Forbes.
Schroders’ 2023 U.S. Retirement Survey indicated there’s a serious Gen X retirement wealth gap of $451,170. Current, non-retired Gen Xers expect to have $661,013 saved for retirement on average. However, $1,112,183 is what they say they’ll need for a comfortable retirement.
“As the first generation to head into retirement largely without the safety net of a defined benefit pension plan, the stakes are higher for Generation X and the margin for error is lower,” said Deb Boyden, Head of US Defined Contribution for Schroders.
The reality is that 45% of survey respondents admitted to not having done any retirement planning and 66% worry they won’t grow their retirement workplace plan as high as they hoped. If you identify the same way, you may not be ready for retirement either.
Here are five tell-tale signs that you may not be ready for retirement either:
1. You Don’t Contribute The Maximum Annual Limit To Your Retirement Accounts
Maxing out your retirement account contribution limits each year is crucial to ensure a financially sound retirement. If you’re not focusing on saving as much as you can for your future, you’re probably not prepared to retire anytime soon.
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2. You’re Still In Debt
Debt eats a hole in your finances and makes it hard to build long-term wealth. It’s important to eliminate most or all debts before you enter your golden years.
3. You Live Above Your Means
If you’ve assumed a lavish lifestyle, one that perhaps you don’t have the financial means to afford, retirement shouldn’t be around the corner. Always living below your means ensures that you can actively save for your future and be prepared for rising costs without putting yourself into debt.
4. You’re Worried About Making Ends Meet
Once you’re ready to enter retirement, you shouldn’t feel concerned about paying the bills and living comfortably. If you still feel this way, consider working some more years before calling it quits.
5. You Still Have Dependents
If you’re still supporting your children or grandchildren, this can be a huge monthly expense. Consider your finances, including how much you have saved and invested, to determine if you’re truly prepared to retire.
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This article originally appeared on GOBankingRates.com: Gen X: 5 Signs You Are Not Ready for Retirement
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