Senior Spotlight: How Baby Boomers & Gen X Approach Retirement

A happy, healthy retirement is virtually the most common goal shared by older adults. But how to achieve it? You could ask a thousand different older adults and get a thousand different answers. A new read from Kiplinger has simplified things a bit by comparing and contrasting how Baby Boomers (born 1946-1964) and Gen X (born 1965-1980) plan for their later years. Here are 3 key differences identified:

Social Security

Kiplinger reports that a large majority of Baby Boomers expect Social Security to be a large part of their retirement cash flow and last through their lifetime. Generation X reportedly feels less optimistic about the role it will play in their retirement income, are less dependent on the stability of it and often strive to save more in case the projected shortfall leads to reduced benefits. 

Higher Returns, Higher Confidence

Baby Boomers have experienced a 9-10% ROI on their portfolios and have typically experienced a higher-than-expected home appreciation. Generation X faces potentially finishing raising kids while caring for older parents, has seen an average 6% ROI on their portfolios and have not owned their homes as long. The result: Kiplinger identifies that Gen X is more cautious and conservative when it comes to investing and saving. 

Reasons Behind A Phased Approach 

The concept of a slow fade to working rather than an abrupt and sudden end to a career is appealing to both generations – but for different reasons. Baby Boomers enjoy maintaining both purpose and workplace community and having income for healthcare costs. Generation X sees a phased retirement as more of a means to an end – supporting ‘sandwich generation’ responsibilities and continuing to save since they feel less secure about Social Security. 

Do you think these generational attitude differences are apparent in the people you know? Has your own investment journey guided your plans today? Has your home played the role in retirement that you expected?

No matter where you have been and where you are going – make sure you also take time to enjoy today. They say time is a thief!

Cheers,

Bobbi 

Bobbi Decker
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