Planning for retirement is often a nose-cringing thought; however, it is very important. In order to properly plan for retirement, it is critical to spend less and save more. Gen X, Gen Y and Boomers all need to think carefully about financial security. Which generation needs more education on reducing spending habits?
Boomers, ages 48 to 67, have about $55,000 saved up for their retirement between their 401k investments, IRAs and social security. Generation X, ages 32 to 47, only has a fraction of that saved – $15,000 between personal and 401k investments.
For Generation Y, well, they may not even get to see social security. If they do, it will be a limited amount, which means that other investments will pay off more. What’s even worse if that Gen Y is comprised of consumers that would rather pay for a vacation in Hawaii than save money for financial security years down the road.
As you can see, the Boomers are pretty well off by the time they reach their retirement age and Gen X can likely live pretty comfortably. However, Gen Y really needs to work on spending less and saving more. Luckily, 80% of American consumers believe that saving will secure their financial future when they reach retirement.
Estate planning and taxes are both important parts of planning for retirement. Whether you’re a Boomer, Gen X or Gen Y, contact Phocus Companies today to learn the benefits and importance of estate planning.
