Gen X Prides Themselves On 3 Things That Make It Harder For Them To Retire, Says A Personal Finance Expert
Kateryna Onyshchuk / Shutterstock As retirement becomes a reality for Gen X, they may find that certain behaviors they pride themselves on may actually be working against them. While these habits may seem like strengths, they could be making transitioning to retirement more difficult than expected.
Gen X has always taken pride in doing things their own way. They grew up to be independent and resilient, and to trust their intuition. However, some of the traits they collectively value have shaped their approach to work and finances.
Here are 3 things that Gen X does that may actually be making it harder for them to retire:
1. Keeping their expectations realistic
For many, this may seem like a saving grace. They know how to spot when something is too good to be true, likely saving them from making financial mistakes or falling victim to bad investments. However, this also means that Gen X may be holding back from taking risks that could lead to big rewards.
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Gen X is known to aim for more attainable goals, ones that are stable and secure. Because of this, they may hold back on their retirement contributions, only setting aside what makes sense to them rather than taking a smaller income so they can contribute more to a 401 (k).
A recent survey from Bankrate revealed that 69% of Gen X workers claimed that they were behind on their retirement savings, with 42% claiming they were "significantly behind." Bankrate’s senior economic analyst, Mark Hamrick, said, "Looking across the generations and a variety of income levels, a key challenge for Americans and their retirement savings is to align their contributions with their realistic long-term needs."
2. Being humble about major achievements
Gen X was raised to be humble. They see it as having good manners, but it may be unknowingly hurting their retirement down the road. If Gen X never shares their successes, they may not get recognized by others.
Further, if your hard work and efforts aren't seen by others, you're jeopardizing your opportunities to receive raises or promotions, which can both affect how much money you have to put away into retirement accounts. Talking about yourself can be an uncomfortable topic for some,
"If you don’t self-promote, your contributions will probably not be visible or recognized, which will limit your ability to get a promotion, a raise, or important projects that will help you advance in your career," says Areen Shahbari, CEO of Shahbari Training & Consultancy and an instructor at the Harvard Extension School and Harvard DCE Professional & Executive Development.
3. Refusing to sell out
Authenticity is one of Gen X's core values. They prefer to avoid the influence of the government and big corporations in their personal lives. Unfortunately, it's basically unavoidable in the modern day to make retirement decisions that don't involve selling out.
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Being afraid to sell out can cause Gen X to put off planning for retirement when none of the options seem right. But if they never make these decisions, they won't be prepared when the time to retire finally does come. They have to accept that the choices likely won't get any better, and they have to just take the best deal they can get, even if they're all essentially some form of selling out.
Kayla Asbach is a writer currently working on her bachelor's degree at the University of Central Florida. She covers relationships, psychology, self-help, pop culture, and human interest topics.
