"The math is unforgiving. According to the latest Bureau of Economic Analysis data, Americans are now spending 92 cents of every dollar of disposable income, leaving just 8 cents for saving. That's up from 90.1% in early 2024. Even as incomes have grown nominally, the personal savings rate has collapsed from 6.2% to 4.2% over the past year. Translation: Gen X is earning more but saving less precisely when they should be doing the opposite."
"Let's talk about what "running out of time" actually means. If you're 55 today and plan to retire at 67, you have 12 years of earnings left. That's 144 paychecks to close whatever gap exists between your current savings and what you'll need to live on for potentially 30 years. At 1.82% annual inflation - the Fed's preferred measure - a $50,000 annual retirement expense grows to roughly $102,000 over 25 years. Underestimate that, and you're planning to be broke at 80."
Gen X faces a retirement funding shortfall driven by low savings rates and limited remaining earning years. Americans now spend 92 cents of every disposable dollar, leaving just 8 cents for saving, and the personal savings rate dropped from 6.2% to 4.2% over the past year. A 55-year-old planning to retire at 67 has 12 years and 144 paychecks to close any retirement gap that may need to support 30 years. At 1.82% annual inflation, a $50,000 retirement expense can grow to about $102,000 over 25 years. GDP volatility, a 13.8% contraction in private investment, and falling consumer sentiment to 52.9 compound the risks to retirement readiness.
Read at 24/7 Wall St.
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