Gen X women, that dynamic demographic born between 1965 and 1980, have contributed significantly to our country’s workforce. At this point in our lives, we’re now in our prime earning years. Many of us are supporting teenagers and young adults and, at the same time, taking care of aging parents. A growing number of Gen X women over 50 are also deciding to end their marriages (otherwise known as “gray divorces”). As all of these competing financial strains are occurring, we’re simultaneously trying to figure out how to navigate the financial impact on our lives now and in the future. It can be a lot to process in real time.
How many of you recall the jingle from the 1980 commercial for Enjoli perfume where the woman in it sang, “I can bring home the bacon, fry it up in a pan, and never let you forget you’re a man?” It inspired many women to believe—and reinforced for others—that we could have both a successful professional career and a flourishing home life. We thought we could have it all, and that belief may have influenced our career trajectories.
This is what we now know: that increase of women in the workforce, working alongside men, didn’t translate to financial equity. There still exists a significant pay gap in earnings that’s growing into a significant wealth gap. That deficit influences how we save and what we can accumulate over time toward specific financial goals, which is increasingly important and urgent as women near retirement.
Our generation entered the workforce during corporate America’s big experimental transition from pensions to 401ks, pushing the responsibility for retirement savings onto workers rather than employers. Now there are flashing warning signs ahead. Gen Xers don’t have enough money saved for retirement. Worries about not having enough money saved are additionally heightened by the uncertain future of social security benefits.
Knowing that retirement is on the horizon and questioning our circumstances ahead, Gen X women are seeking guidance on how to plan for the seismic personal, professional, and financial shifts many of us will experience in our 60s.
To retire comfortably, Gen X women need approximately $1.5–$3M in savings. The Secure Act 2.0 allows individuals age 50 and older to contribute up to $30,500 of their salary toward retirement, which includes a $7,500 catch-up provision. Many Gen X women are taking advantage of this opportunity by maximizing retirement savings.
Dr. Paula Anderson, President and CEO of Pace Consulting, in College Park, Maryland, substantiates these sentiments. She shares “I’m in the season [of] throwing money into my retirement to make up for lost time,” understanding that “it’s going to look different for us.” Some Gen X women are planning to stay in the workforce, including those turning their passions into second-act businesses and job opportunities. Others are exploring tax strategies and estate plans to ensure they stretch their savings as long as possible since life spans are increasing, even more regularly to 100 years old.
In preparation for your future, start with three steps:
1. Assess Your Current Financial Situation
Review your assets, including savings, investments, and any retirement accounts. Then determine if your assessment puts you on track to meet your savings and investment goals.
2. Calculate Retirement Savings Needs
Use a retirement calculator like this one at Vanguard to estimate how much you’ll need to maintain the lifestyle you want to lead after you stop working. Factor in inflation, healthcare costs, and potential longevity.
3. Consult With A Financial Planner To Create A Personalized Plan
A trusted advisor can guide you away from costly mistakes and ensure your investment decisions are grounded in sound financial principles.
Renee Collins, certified financial planner and founder of Retire Ready, Inc., says Gen X women are more concerned than ever before about having a quality life balance. As they navigate their prime earning and saving years, she advises, “recognize that you are in control of your destiny, especially when it comes to your retirement,” and I agree.
We’ve navigated catastrophes and milestones, from the 1991 recession to tremendous technological advancement. In some cases, we were the catalysts for social and institutional changes like private pumping spaces for working breastfeeding mothers and flexible schedules to help juggle work/life balance.
The next phase of life will be just as unpredictable as the past 50 years. But the good news is you get to define how it looks and how to make them your best financial years yet.
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