Some Gen Xers Are Struggling To Save For Retirement As They Financially Support Family | Global News Avenue

If you feel like financially caring for your family is making it harder to save for your own retirement, you’re not alone.

A recent survey revealed that more than half (56%) of Gen X investors provide financial support to parents and children, which has impacted their retirement savings.

Nationwide Mutual’s survey showed some 23 per cent said they had to scale back or stop save for retirement Because of it. To meet family financial obligations, some (24%) have taken on more credit card debt, while about a third have cut back on non-essential spending.

“for sandwich generation “They often put the needs of their loved ones ahead of their own, putting them in a potentially precarious financial situation with long-term consequences,” said Craig Hawley, president of Nationwide Annuities.

Even more concerning, 16% of Gen

Experts generally advise people not to tap into their retirement accounts earlybecause doing so means missing out on the benefits of compound interest and possibly having to pay an early withdrawal penalty.

Inflation and the economy could further derail Gen X’s retirement plans

In addition to family responsibilities, the economy is also putting pressure on Generation X’s retirement prospects. More than a quarter (26%) say they will retire later than expected due to inflation, and nearly half (44%) say they expect to retire at age 66 or later.

However, this may not be the case.

A recent Pan American survey of current retirees found Most people drop out of the labor market earlier than expectedthe average retirement age is 62 years – mostly due to health or employment-related issues.

Many Gen Xers are already behind when it comes to saving for retirement. Three in 10 respondents said they had less than $100,000 in savings, while only 16% said they had at least $1 million in savings.

They may also be slightly worse off than previous generations due to factors beyond their control.

“Gen X investors bear the impact of major economic events, from dotcom crash 2000 to Great Recession Entering the labor market in 2008 at the same time as pensions were being phased out,” Hawley said.

Despite grappling with multiple financial priorities, Gen Sufficient savings to weather a possible economic downturn: This occurs within the next 12 months.