Generation X faces significant financial challenges in today’s economy. Inflation, high interest rates and student loans are only the beginning. From long-term care planning to managing the facets of today’s economic landscape, retirement savings are more challenging than ever. Together, we will walk through a few tactics to support yourself through the retirement savings journey.
1. Be the Leader of Your Future
The first tip to halting the struggle to save is to take control of your controllables. Are there spending reduction opportunities available? Is there a new budgeting technique you could try? Is there an income booster available through hobbies or work connections? Once you make the decision that your retirement is a priority, despite all elements, the roads to make it happen start to reveal themselves.
There are major hurdles in place for the Gen X generation to make retirement savings happen, there is no denying that. In fact, 84% of student loan borrowers state that debt is negatively impacting retirement savings. The upside, though, is that there are avenues available to you to reach your goal. Let’s explore a few of them together.
2. Set a Goal
Getting clear on your investment goal may perpetuate your savings efforts further. You may be surprised by the actual amount required to have an impact. Consistency is the most effective factor, not the amount. Try exploring investment calculators and reading up on compound interest to discover the impact of a consistent retirement investment.
3. Create Space for Investments
Finding ways to free up income to invest can be challenging. The most impactful way to start is to create or revisit your budget. As priorities and values shift, so does your budget. In some cases, simply putting expenses down on paper can show available income. If that’s not the case, a debt reduction journey may need to be considered. A focused, tiered approach to financial goals can be one of the most effective ways to reach your goals.
4. Automate
Once, you’ve set up an initial investment strategy, consider automating it. Directing funds to retirement savings instantly from an account or paycheck helps reduce the friction around saving. When you don’t see it hit your account or you know an automated trigger is in place, it helps with consistency. Try a few different automation methods and see what you prefer.
5. Give Yourself Some Grace
The focus and effort to take care of yourself in retirement is a noble and honorable journey. The ups and downs of the economy, caring for your loved ones and also prioritizing your future self is a huge feat to tackle. Give yourself a little space to not get it right the first time. Maybe you fall off the wagon or can’t quite figure out a way to free up cash to invest immediately. Pat yourself on the back for researching ways to invest, given the challenges, and slowly and steadily work from there.
6. Explore Support Options
Empower yourself to stick to your goals. Find what works for you. Exploring your motivations and values could help guide where the majority of support is needed. Sometimes all you need is an accountability partner to check in on your progress, or maybe it is simply a budget check each month to review your spending. There is no “right” way to support your financial goals, so test a variety of creative methods that work best for you.
Bankers Life is Here
Navigating today’s financial landscape is tough. Leaning on support can help navigate your way to a secure financial future with Bakers Life. Reach out today to chat with a representative.
