Bridging the Gap:

How Gen X Can Boost Retirement Readiness with Fixed Indexed Annuities

As Generation X approaches their 60s, many find themselves facing a stark reality: retirement readiness remains elusive. Recent studies highlight the financial challenges confronting this “forgotten generation,” born between 1965 and 1980. But all hope is not lost. With strategic planning and the right financial tools, Gen Xers can take steps to secure their financial future. One such tool worth considering is the fixed indexed annuity (FIA).

The Gen X Retirement Dilemma

Generation X launched their careers during a seismic shift in retirement planning. As employers moved away from traditional pensions to 401(k)s, the responsibility for retirement security fell squarely on workers’ shoulders. This transition, coupled with economic setbacks like the 2008 financial crisis, has left many Gen Xers struggling to build adequate nest eggs.

Key challenges facing Gen X include:

  1. Lower confidence: Only 62% of Gen Xers feel confident about being able to financially support all the things they want to do in life, compared to 82% of boomers and 77% of millennials (Allianz Life study, 2024).
  2. Lack of financial planning: 58% of Gen Xers do not have any written financial plan (Allianz Life study, 2024).
  3. Ongoing debt burdens: Credit card debt (40%) and housing debt (39%) are keeping many Gen Xers from saving more for retirement (Allianz Life study, 2024).
  4. Competing financial priorities: Supporting both adult children and aging parents.

The FIA Solution

Fixed indexed annuities offer features that can help address some of Gen X’s pressing retirement concerns:

  1. Growth potential: FIAs provide the opportunity for growth linked to market index performance, allowing Gen Xers to potentially boost their savings.
  2. Downside protection: Unlike direct market investments, FIAs offer protection against market losses, preserving hard-earned savings.
  3. Guaranteed income: Many FIAs offer the option to convert savings into a guaranteed income stream, providing peace of mind in retirement.
  4. Tax-deferred growth: FIAs grow tax-deferred, potentially allowing for more compound growth over time.

Taking Action: Steps for Gen X

  1. Assess your current situation: Take stock of your existing retirement savings, debts, and future goals. According to Fidelity, the average 401(k) balance for Gen X was $182,100 as of Q2 2024.
  2. Maximize existing accounts: If possible, increase contributions to your 401(k) or IRA to take advantage of compound growth. 
  3. Explore FIAs: Research how an FIA might fit into your retirement strategy. Consider products like Oceanview’s Harbourview FIA, which offers competitive rates, downside protection against market losses, and the potential for growth linked to market index performance.
  4. Consult a professional: Work with a financial advisor to create a personalized retirement plan that addresses your unique needs and goals. Only 35% of Gen Xers currently have a financial professional (Allianz Life study, 2024).
  5. Start now: Whether you’re in your mid-40s or approaching 60, taking action today can significantly impact your retirement outlook.

Looking Ahead

While Gen X faces unique retirement challenges, it’s not too late to take control of your financial future. By understanding your options and leveraging tools like fixed indexed annuities, you can work towards bridging the retirement gap. Remember, the key is to start today – your future self will thank you.

Discover the Oceanview Difference

As you navigate your path to retirement, consider partnering with a trusted company like Oceanview Life and Annuity. With an A (Excellent) rating from A.M. Best, Oceanview offers financial strength and stability you can rely on. Their Harbourview FIA is designed with simplicity in mind, providing a straightforward way to potentially grow your retirement savings while protecting against market downturns. Oceanview values professional guidance and encourages working with a financial advisor to determine if their products align with your unique retirement goals. With competitive rates and a dedication to client needs, Oceanview could be the partner you need to secure your financial future. Visit oceanviewlife.com to learn more about how Oceanview can help you on your journey to a confident retirement.

Disclaimers:

References: https://www.allianzlife.com/about/newsroom/2024-Press-Releases/Gen-X-Approaching-Retirement-Crunch-Time-with-Savings-Regrets

References: Fidelity Research

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