Why retirement dreams could be a nightmare for many in Gen X

[Yo_Mama_Been_Loggin]

In a few years, the oldest Gen Xers will be headed toward retirement… with almost no savings whatsoever.

A new report from the National Institute on Retirement Security (NIRS) finds an alarming outlook for the generation born between 1965 and 1980: a whopping 40% don’t have any retirement savings at all, and the typical household has just $40,000 saved up.

The outlook is even more dire for low-income Gen Xers, who typically have $4,300 or less saved.

In fact, retirement savings for Gen X is highly concentrated among the highest earners, while Blacks and Hispanics have substantially lower savings and access to retirement plans, the report found.

https://www.bizjournals.com/seattle/news/2023/08/22/as-gen-x-approaches-retirement-millions-have-almo.html

Add to that the fact that many companies no longer provide a pension for retirees.

[GPV]

1. No retirement in sight for us.

[CrispyQ]

2. How will they build a Social Security account in a gig economy?

Do companies like Lyft take out withholding taxes? Plus I think there is a number of years requirement, too.

Add to that that so many are priced out of the housing market & won't have a home that is almost paid off when they retire.

[localroger]

5. You're supposed to pay it yourself

When you do your Fed income tax there's a line for that. My wife has been self employed for decades but she's legit in the system.

[MichMan]

6. I suspect that a number of gig workers under report their income taxes & just pocket cash tips etc.

That would include social security taxes as well

[Merlot]

7. Except that tipping is in the most cases done thru the app

Cash tips would probably make up less than $600 - the reportable amount required by the IRS. I would guess most apps don't allow for cash tipping so that all income is reported. A lot of app users may not carry cash as a lot of places either don't require it or are cashless.

[MichMan]

9. There are tons of gig jobs that don't go through apps

I wasn't limiting my comment to ride sharing services

[Merlot]

10. Really? Where do people find them?

[MichMan]

11. You're right, no one gets unreported cash payments under the table without it going through an app.

[Merlot]

12. No that's not what I'm saying. I understand there is an underground

cash market. However the gig economy is usually app based. It would be hard for someone to make a steady living getting gigs off of craigslist for example. The apps provide the steady gigs.

But thank you for the sarcasm, it's what the world needs more of.

[steelyboo]

3. Thanks, here is a no paywall link

https://archive.ph/ZkQ3y

thing took forever to archive, but it finally worked.

[leftieNanner]

4. And if they have been lower level earners for most of their working lives

Then when they do retire, their social security check won't be very big.

Terrible.

[Merlot]

8. So true that.

[Hestia]

13. I truly question this - maybe the money isn't parked in 401k's but funds have been invested

in other instruments - Index Funds, T-Bills, etc. Gen Xer's too smart to get caught in the Boomer traps, especially after 2000/2001 & 2005-2008 meltdowns. Heck, probably in Panama, parked off shore, but nothing? no, not even