Step Aside Baby Boomers: Gen X Is Starting to Retire
Category: General Retirement Issues
December 20, 2022 – There is a new crush of retirees coming to town, and they are not Baby Boomers. Generation X, those born from 1965 to 1980, are finally getting their turn in the retirement spotlight, a very big demographic shift in the making. The eldest GenX-ers will turn 58 in 2023, the age when many people start retiring in earnest. But how ready for retirement will this new generation be, and how will it differ from the baby boomers before them?
Confident?
Fortunately, many in the Gen X generation have been preparing for retirement. Most have been saving for that day, confident about their money skills, but worried that they might fall short of what it takes to maintain their working day lifestyles. Of course, either from choice or necessity, not all of they will retire early, or ever.
Comments on "Step Aside Baby Boomers: Gen X Is Starting to Retire"
John Brady says:
What I always find interesting in these studies is how most generations say they will retire much later than they actually do. Yes, there is always a segment that yearns to retire as soon as they can (FIRE Movement). It is probably not so much that the intent to retire late or not at all changes, it is rather that forced retirements and family/medical issues drive the earlier retirements. Expected retirement age is 57 for Gen Z, 61 for millennials (so they say). Unretired baby boomers say it will be 68. Currently the average age for retirement in US is 64, higher for men and lower for women.
Larry says:
The issue may be with the definition of “retirement.” What if you leave, say, your corporate job after 30 years but decide to work at something part time? Are you “retired?” What if you retire from a state-college teaching job, start collecting your state pension but continue to teach part-time (10 hours a week) at a private school, as an adjunct? (A close friend does this at age 72.) Or what if, like me, you take “early” retirement because your age (54 at the time) plus years with the company make you pension eligible? (I’m 74 as I write this.) Am I still considered retired if I started a modest real-estate related job part time, as I have done?…I play in a golf league that is coordinated by a man who retired from his financial services job a decade ago. His work organizing the league consumes about 15 hours a week. I’d say that, like me and millions of other “retired” Boomers, he hasn’t really retired from working; he’s just changed jobs. The true definition of retirement isn’t when you stop being paid to work; it is when you stop working.
JCarol says:
Like Larry, my husband and I continue to work. At 64 we dramatically scaled back our small business. With the younger of us now nearly 70 (and about to file for maximum SS), we expect to further scale back in 2023 while retaining a few favorite customers.
Many Boomers (and previous generations) moved from full-time to part-time work, at least during early retirement years. Sure, the additional income is welcome and helps stave off nest egg draw downs, but a lot of us also enjoy the work, the continued connection with the business world, the mental stimulation, and the increased self-worth that often comes from feeling productive.
Plenty of retirees move to volunteer work for many of the same reasons.
When filling out forms, it's often difficult to characterize this fairly common status. Are we retired (mostly), employed (sort of), self-employed (yes, but not the way they mean) or other/none of the above (a dissatisfying, imprecise answer)?
The choices virtually never include the most accurate description of many millions: semi retired.
Patrick says:
Larry and JCarol hit the nail on the head with the retirement definition question. I think most people hear "retirement" and picture the person sitting on a beach drinking pina coladas or something absolutely boring like that.
My definition is financial independence; where you know, truly know, that you can live the lifestyle you want without ever having to earn another dollar. At that point you're "retired" in my opinion. It's completely okay to continue working in retirement if that is what makes you the happiest, and many of my friends have. They actually found that they enjoyed working even more when they realized that they no longer had to.
RichPB says:
Great comments! I completely agree with Patrick. We have been retired almost 20 years (since 55) even though we mostly have felt too busy to "work". Whether that is for your own upkeep, working for others (volunteer or paid), socializing, travel, pure recreation or (fill in the blank), it's the freedom from significant financial stress and being able to do mostly what you want that defines real retirement. Unfortunately, there are many why are "retired" who aren't financially able to live a life like that. Or who have over-spent their way out of it. So we're left with comfortable retirement vs difficult retirement.
BillyBogey says:
Well Sport's Fans I do enjoy sitting on a Beach drinking a Rum & Coke. However, the Wheels do not stop turning!! Trust they never will!!
Fortunately I tend to keep myself occupied as I have the time to Spend/Chat with People from different Walks of Life as they bring lot's of Smiles & Laffs. One thing moving into Retirement has helped me "Being Out on Day Pass" goes a long way!!
& Yes, I know what my RRSP is doing but know am a somewhat Smarter as measure it 1/4ly not Monthly. Learning not to be PITA is a process.& look forward to getting thru The Pearly Gates, maybe the Back Gate, but I will get in!!
Cheers.
b
LS says:
As Joe Walsh sang in Life's Been Good, "They say I'm lazy but it take all my time."
John Brady says:
I agree with these comments. When I go through Customs they is often a question: what is your occupation? Are you retired or not? I am conflicted about how to answer. I am mostly retired, but Topretirements is definitely a job for me (one I love)! But I am not working full time either. I think my situation fits a lot of other people too. A good position to be in!