Ramping Up Retirement Funds Across Generations

From: REAP, LLC. | Retirement & Estate Advisors & Professionals

Today, each generation can lay claim to unique financial challenges. Millennials are saddled with historic levels of student debt, Gen Xers are called the sandwich generation because many are taking care of their children as well as their aging parents, and the majority of baby boomers feel underprepared for retirement, even as it looms in the near distance.

But one factor is common across all generations: Most people need to save more for retirement. Here are some tips for individuals across all age groups.

Millennials — Early in one’s career, it can be tempting to enjoy all of the income left after bills and student loan payments. But millennials could benefit from learning to resist the temptation to spend entire paychecks early on. Instead, automate the process of paying yourself first. If money never shows up in a “spendable” account, you can learn to live with what’s left over by default.

Gen Xers — For Gen Xers who are behind on their retirement savings, it’s time to get serious about tightening spending habits, which is something that will only get more important over the years. Seemingly insignificant daily expenses, like gourmet coffee and eating out, can quickly add up to surprising amounts. Consider adopting a more mindful DIY approach to consumption routines.

Baby Boomers — Playing catch-up with your savings so close to (or even in) retirement calls for a new lifestyle perspective. Instead of living large, learn to downsize your financial liabilities. A smaller home is easier and more affordable to maintain, and if you’re supporting adult children, it’s time to encourage them to become independent. After all, the more you can amass for retirement, the more likely you’ll be able to leave a legacy to heirs.

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