Gen Xers Aren't Saving for Retirement

Too many still living paycheck to paycheck, one expert warns
By Lucas Laursen,  Newser Staff
Posted Nov 10, 2007 7:42 AM CST
A home piggy bank is seen in this undated photo. MSNBC reports that aging Gen Xers are too saddled with costs and debt to save for retirement.   ((c) trungson)
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(Newser) – Aging Gen Xers are too saddled with costs and debt to save for retirement, MSNBC reports. In fact, 62% of Gen Xers—those born roughly from 1965 to 1980—said they still live paycheck to paycheck, according to a Charles Schwab survey. And they’re headed for trouble: The fund that helps back Social Security will likely be drained by 2040, when many Gen Xers retire. 

Investment firms are trying to spur Gen X savings, offering free music downloads and dropping investment account minimums. Plus their pros are advising a group that faces high school costs for kids and hefty mortgages. “Pay yourself first,” said one, who said credit card debt comes second. Most X'ers will need $2 million by retirement unless they want to work into their 70s, he warned.