After paying down their student loans and credit cards and saving money for their first home, building a nest egg is often not a priority for Gen X-ers, who are 33 to 49 years old. Stagnant wages, a lack of employer-paid pensions and companies opting out of 401(k) matching programs means more people need to catch up.
- Also See: Why You Can't Borror From Your 401(k) and the Only Way You Should
- Also See: Here Are 5 Places Where You Can Retire And Leave Your Car Behind
- Also See: Two-Thirds of Gen Y Would Change Jobs for Better Retirement Benefits
"If you wait too long, you might have to delay retirement and keep working a lot longer than you'd like," said Melinda Kibler, a Fort Lauderdale, Fla. certified financial planner with Palisades Hudson Financial Group, which has $1.3 billion under management.
Gen X-ers, who were born between 1966 and 1975, lost the most wealth during the Great Recession compared to other generations 45% or an average of $33,000 of their funds vanished during the economic downturn between 2007 and 2010, according to a report by Pew Charitable Trusts in 2013.
The majority of Gen X-ers already lacked an adequate amount of savings before the downturn, pushing back their retirement goals even further. The average Gen X-er will be able to likely replace only half of their pre-retirement income, Pew Charitable Trusts said.
The fact that Gen X-ers lost nearly 45% of their wealth is "staggering" and only reinforces how important it is that Gen X-ers rebuild their financial foundation, said Kimberly Clouse, Covestor Advisory Board Chair, an online asset management company based in Boston and founder of Via Global Advisors.