Gen X Finally Tops Boomer 401(k) Balances, But Will It Be Enough To Retire?

[crossbody]

We plan to retire in 2029. I will be 65 and my wife 62. I will wait till 67, or maybe 70, to take my SS, my wife will take hers right away.

We were late getting started saving for retirement. Outside of my Marine Corps pension we did not have a dollar saved for it 12 years ago. When we retire we will be pushing 750,000 in our 401k/IRA. Add to that two pensions and SS and we will have a good life.

Oh, and we plan to relocate to Panama and live the ex-pat life.

Even if you get a late start investing for retirement it's best to at least start. Good thing you and your wife decided to start rather than just forsake doing so completely. A lot of people never start at all.

I am a bit concerned about you not taking social security until 67 or 70 because you will be losing so many annual income deposits. I know that in taking it at a full retirement age and later, you get more money, but you will have also lost so many years of income deposits that it would be hard to ever get that back.

Let's say that not drawing at age 62 and waiting until age 70 you've lost out on 8 full years of income deposits. To where at age 70 you're trying hard to catch up with all the lost years you forfeited. At least your wife is going to draw on hers right away-smart move. Other than that it looks your two made some really retirement decisions.

 

[Harpy Eagle]

Even if you get a late start investing for retirement it's best to at least start. Good thing you and your wife decided to start rather than just forsake doing so completely. A lot of people never start at all.

I am a bit concerned about you not taking social security until 67 or 70 because you will be losing so many annual income deposits. I know that in taking it at a full retirement age and later, you get more money, but you will have also lost so many years of income deposits that it would be hard to ever get that back.

Let's say that not drawing at age 62 and waiting until age 70 you've lost out on 8 full years of income deposits. To where at age 70 you're trying hard to catch up with all the lost years you forfeited. At least your wife is going to draw on hers right away-smart move. Other than that it looks your two made some really retirement decisions.

The reason I will wait till at least 67 is in case I die before her, I want her to have as much coming in a possible. I doubt I will wait till 70 unless things are going really well. It is only a two year delay.

I cannot start at 62 as I will still be working till 65. I will not retire till my wife is ready to, my job is too easy and pays too well to walk away till she is ready.

It is still up in the air, we have 5 years to finalize it all.

 

[crossbody]

The reason I will wait till at least 67 is in case I die before her, I want her to have as much coming in a possible. I doubt I will wait till 70 unless things are going really well. It is only a two year delay.

I cannot start at 62 as I will still be working till 65. I will not retire till my wife is ready to, my job is too easy and pays too well to walk away till she is ready.

It is still up in the air, we have 5 years to finalize it all.

sounds good

Also keep in mind that you can get social security and still work and make under a certain amount, and there maybe some other rules that apply. Like maybe not working for the first year of retirement or something like that.

Some people do not want to leave the family they work on the job with. For a smaller salary they can do both.

 

[Harpy Eagle]

Also keep in mind that you can get social security and still work and make under a certain amount, and there maybe some other rules that apply. Like maybe not working for the first year of retirement or something like that.

I make way too much, I would lose it all. I am fine with working till she is ready. I have a pretty good gig and she has only been working for about 12 years after raising our kids.

She still has zeros in her SS calculation, it is fun to watch how much it goes up when a zero is replaced by 140k. If she retires at 62 she will have replaced all the zeros and a couple of 20k years.

Some people do not want to leave the family they work on the job with. For a smaller salary they can do both.

I would quit today if I won the lotto, but till then I will work till my wife is ready to hang up the scrubs.

 

[crossbody]

I've come to the conclusion that having a lot of money is not good. Not even invested retirement money.

The proof is in God's Word, and in the attitude, behavior, and ugly ways of those in the world who do have a whole lot of money. Maybe there is a mysterious evil, or wickedness associated with having a lot of, or too much money.

It could just be best to get to where you can say, "I do not want more money." The wisdom of it all.

 

[Harpy Eagle]

I've come to the conclusion that having a lot of money is not good. Not even invested retirement money.

Can you define "a lot" when it come to money? How much is "a lot"?

 

[crossbody]

Can you define "a lot" when it come to money? How much is "a lot"?

A lot of money to make one evil, wicked, hateful, etc... is "whatever that amount it"

For some its just $100 that changes them even $100 they will kill another for. For some it's a few thousand. For most its any where in the million dollar area that causes them to mistreat, bad mouth, and degrade others. Money, as much as it answers all things it can also be a noose around the neck.

God refers to it as "the love of money" being the root of all evil. That is a bit of a play on words because the love of money can cause others to do some hateful things.

 

[Harpy Eagle]

A lot of money to make one evil, wicked, hateful, etc... is "whatever that amount it"

For some its just $100 that changes them even $100 they will kill another for. For some it's a few thousand. For most its any where in the million dollar area that causes them to mistreat, bad mouth, and degrade others. Money, as much as it answers all things it can also be a noose around the neck.

God refers to it as "the love of money" being the root of all evil. That is a bit of a play on words because the love of money can cause others to do some hateful things.

Thanks, so it is not the amount of money that is the issue, it is how one views it or how they get it?

 

[DGS49]

Having "enough" to retire basically and usually comes down to one thing: Will you and your spouse end up in a nursing home? If you do, most people run short. If you don't, and have a reasonable amount saved up you will be fine.

My sister is 84 and doing fine, living in a wonderful "independent living" facility, but at 84 she can't live much longer before her nest egg runs dry.

 

[citygator]

Stock market is up 47% over the last 5 years. Thanks Biden!

 

[martybegan]

Gen X finally tops Boomer 401(k) balances, but will it be enough to retire?​

Updated Sun, Jun 23, 2024, 12:04 PM CDT

For the first time ever, Gen X workers saw their 401(k) balances top those of Baby Boomers, Fidelity data showed.

Balances for Gen X workers who’ve been saving for 15 years averaged $543,400, $200 more than Boomers’, according to the financial service firm’s analysis of its more than 22 million accounts in the first three months of the year. Gen X, born between 1965 and 1980, is the next generation to retire behind the Boomers born between 1946 and 1964 retiring now.

Gen X is often referred to as the forgotten generation, sandwiched between the large and culturally powerful Boomers and Millennials. It’s also the first generation to start working as 401(k)s replaced pension plans. Surveys have shown many of them don’t have nearly enough for retirement, but Fidelity’s report shows some green shoots.

Gen X finally tops Boomer 401(k) balances, but will it be enough to retire?

For the first time, Gen X's 401(k) balances top those of Boomers, Fidelity says. Is it enough to get the forgotten generation back on track to retire?

finance.yahoo.com

I'm just turning 50 and got around 900k in in 401k. According to the charts I'm well over where I should be.

Have to thank my departed grandfather who told me at 22 to always invest up to the company match at a minimum, and never go under 10% of your salary unless you are in dire straits.

 

[Harpy Eagle]

I'm just turning 50 and got around 900k in in 401k. According to the charts I'm well over where I should be.

Have to thank my departed grandfather who told me at 22 to always invest up to the company match at a minimum, and never go under 10% of your salary unless you are in dire straits.

I wish someone had told me that when I was 22. 12 years ago the wife and I had zero saved for retirement. We are playing catch up, but in 5 years when we retire we should have 750k at a minimum. Between that, pensions and SS we will be more than fine.

 

[martybegan]

I wish someone had told me that when I was 22. 12 years ago the wife and I had zero saved for retirement. We are playing catch up, but in 5 years when we retire we should have 750k at a minimum. Between that, pensions and SS we will be more than fine.

At least you started earlier than some people have. I got lucky in having a grandfather well versed in money, and willing to give out advice. Many of my cousins and other relatives often sought his council. and we had him around until he was 102, still clear of mind and able to take care of himself.

And the thing is I don't have a pension. On the plus side I work in Engineering, so even after "Retirement" companies often keep people on for 10-20 hours a week just as information vaults.

 

[Harpy Eagle]

At least you started earlier than some people have. I got lucky in having a grandfather well versed in money, and willing to give out advice. Many of my cousins and other relatives often sought his council. and we had him around until he was 102, still clear of mind and able to take care of himself.

And the thing is I don't have a pension. On the plus side I work in Engineering, so even after "Retirement" companies often keep people on for 10-20 hours a week just as information vaults.

Having pensions helps a lot with the planning, and both get COLAs so they will increase over time. Just my Marine Corps pension will bring in more than 600k if I live for 20 years after retiring, and based on my family history I should live long past that.

 

[whitehall]

The source, Yahoo finance? Yeah right.

 

[martybegan]

The source, Yahoo finance? Yeah right.

it would make sense. Boomers are dying of old age now and are using up their 401ks, meanwhile Gen X just deals with usual mortality issues and are in the peak period of their earnings potential.

 

[Harpy Eagle]

it would make sense. Boomers are dying of old age now and are using up their 401ks, meanwhile Gen X just deals with usual mortality issues and are in the peak period of their earnings potential.

Yep, this was expected for sure. Most of the boomer generation is beyond retirement age

Personally, I think the boomer generation is about 5 years too long. I was born in the last boomer year but should really be a Gen Xer.

 

[Harpy Eagle]

The source, Yahoo finance? Yeah right.

The source is Fidelity, did you even bother to open the link?

 

[martybegan]

Yep, this was expected for sure. Most of the boomer generation is beyond retirement age

Personally, I think the boomer generation is about 5 years too long. I was born in the last boomer year but should really be a Gen Xer.

The 2-3 years at the end of each generation are malleable.

My sister is barely a millennial, but since she had two late Gen X older brothers, she identifies far more with Gen X than Millennials.

 

[Jarlaxle]

Having "enough" to retire basically and usually comes down to one thing: Will you and your spouse end up in a nursing home? If you do, most people run short. If you don't, and have a reasonable amount saved up you will be fine.

My sister is 84 and doing fine, living in a wonderful "independent living" facility, but at 84 she can't live much longer before her nest egg runs dry.

That's why my plan remains a shotgun on my 65th birthday.