Pella Chronicle

Community News Network

June 16, 2014

Lean retirement looms for Generation X

(Continued)

As of May, unemployment for 35- to 44-year-olds was 1.8 percentage point higher than in the same month in 2007.

The plight of Gen-Xers also means less support for the economy as they limit spending and concentrate on building up nest eggs, Emmons said.

Matthew Kraft, out of work for about a year, is watching fewer movies at the theater and dining out less. The 39-year-old former public relations manager in New York has filled out more than 110 applications to find something other than entry-level work.

"If this keeps going on for another four or five months, it's going to start to hurt," said Kraft, whose wife works at a hedge fund. "We have been living off of her income and dipping into our savings."

Generation X has already forfeited valuable years of interest compounding by failing to accrue savings early, said Alicia Munnell, the director of the Center for Retirement Research at Boston College and former research director at the Federal Reserve Bank of Boston.

"Gen-Xers are going to live longer than the current generation of retirees, and the major source of retirement income is going to be smaller," Munnell said. After 40, if "you've put this off, you really have to save at a mind- boggling rate to accumulate enough to retire."

As for Johnson, a mother of a 17-year-old daughter and a 12-year-old son, she's more concerned about day-to-day living than about preparing for retirement.

Her home-loan modification "is a Band-Aid for a hemorrhage" as her business continues to struggle, she said. "It'll seem like it's getting better, and then it gets worse."

Text Only
Community News Network
Features
Facebook
AP Video
13 Struck by Lightning on Calif. Beach Baseball Hall of Famers Inducted Israel, Hamas Trade Fire Despite Truce in Gaza Italy's Nibali Set to Win First Tour De France Raw: Shipwrecked Concordia Completes Last Voyage Raw: Sea Turtle Hatchlings Emerge From Nest Raw: Massive Dust Storm Covers Phoenix 12-hour Cease-fire in Gaza Fighting Begins Raw: Bolivian Dancers Attempt to Break Record Raw: Israel, Palestine Supporters Rally in US Raw: Air Algerie Flight 5017 Wreckage Virginia Governor Tours Tornado Aftermath Judge Faces Heat Over Offer to Help Migrant Kids Kangaroo Goes Missing in Oklahoma More M17 Bodies Return, Sanctions on Russia Grow Raw: Deadly Tornado Hits Virginia Campground Ohio State Marching Band Chief Fired After Probe Raw: Big Rig Stuck in Illinois Swamp
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Obituaries