Baby Boomers
1946-1964
TOP CONCERN: Retirement & Health Care Costs
Because of the ‘Great Recession,’ many Boomers are seeing a gap in their retirement savings and some are still recouping losses. To get back on track, or to stay on track, working one-on-one will be the most beneficial for Boomers, who appreciate more personal interactions versus technology.
Statistics
- 79% of Boomers are still saving for retirement
- 52% believe they will have to delay retirement.
- 23% are delaying retirement to retain their current healthcare benefits.
- Boomers are the most financially stable generation, with 6 in 10 reporting they can afford an unexpected expense of $10,000.
- Average Debt: $87,438. Debt accumulations include mortgages, credit cards, auto loans, student loans and personal loans.
Focus on
- Prioritizing your retirement before helping loved ones;
- Budgeting to reduce debt and save more to close the retirement gap;
- Better managing your investments as you get closer to retirement; and
- Planning for long-term care costs.
Gen X
1965-1980
TOP CONCERN: Running Out of Money in Retirement
Gen X is caught in the middle. Many, still paying for children, are now faced with care for aging parents. Focusing on the needs of others without recognizing your own is a plan for disaster. Right now, Gen X should pay down debt, minimize expenses, and budget how much time and money you will invest in the needs of your parents and children.
Statistics
- 26% of Gen Xers have already withdrawn money from their retirement plans to pay for other expenses.
- 44% find it difficult to meet household expenses on time each month
- 53% consistently carry credit card balances greater than half their available credit
- Gen Xers are the best savers, setting aside 16% of their post-tax income.
- Average Debt: $125,000
Focus on
- Paying down debt;
- Reversing the decline in money management;
- Making sure they have adequate insurance and estate planning protection; and
- Translating their growing retirement and investing awareness into more saving and better investing.
Millenials
1981-1995
TOP CONCERN: Meeting Current Expenses
Typical of the age, this is a spending generation. So, it’s time to reexamine your spending. What have you given up in 2020 that you can keep giving up in 2021?
Statistics
- 46% of Millennials find it difficult to pay household expenses on time each month
- 42% have student loan debt
- 30% Millennials use credit cards to pay for monthly necessities
- 40% of those who consistently carry balances on their cards find it difficult to make minimum monthly payments
- Average Debt: $52,120
Focus On
- Strengthening their money management skills;
- Paying down credit card and student loan debt;
- Setting long-term goals for retirement planning and investing; and
- Maximizing technologies like retirement calculators and robo-advisers to be more proactive with their investing and spending.
Gen Z
1996-2012
They may be the youngest generation, but by 2025 they will make up one-fifth of the US labor force so it’s not too early for Gen Zers, aka “Zoomers,” to develop healthy financial practices.
When it comes to saving, the saying ‘a little goes a long way’ is a great approach. A great strategy for Gen Zers would be to make small deposits on a regular basis. Even just an extra $10 a week deposited into a savings account will add up to over $2,600 in 5 years. $25 a week and you’d have over $6,500 in 5 years.
Focus on
- Building savings and emergency funds;
- Establishing a budget and tracking spending habits;
- Minimize debt practices; and
- Begin setting long-term goals for retirement planning and investing.
We need to remember across generations that there is as much to learn as there is to teach.
Gloria Steinem
