How Much Money Do GenXers Need to be Happy in Retirement?

Hi. I’m Connie. As a serial “Grandmapreneur®”, I speak to retirees or soon-to-be retirees on the benefits of pursuing entrepreneurship in retirement. This blog post will help entrepreneurs understand how much GenXers need to be happy in retirement, which you will need as you consider starting a business.

The GenXers and Why They Need to Prepare for Retirement

Situated between two famous generations―the baby boomers and millennials― the older side of Generation X or GenXers, silently goes toward retirement age. 

However, most GenXers need to meet a certain amount before retiring. Unfortunately, nearly 9 in 10 GenXers fall short, according to Forbes. 

Plus, most GenXers will have to work until their late 60s and early 70s, given that they have a pension, social security, and future raise. 

But the good news is, as a GenXer, you can retire early as long as you manage your finances well. In an effort to help you prepare for retirement, I explore how much you need to save for retirement below.

How Much Money GenXers Need to be Happy in Retirement

This section explores how much money you need to be happy in retirement. But please keep in mind that these figures are general rules of thumb. 

If you want to retire early or be a second-act entrepreneur, you need to save money more and save early. The amounts discussed here only involve living happily and comfortably for retirement. It doesn’t consider other goals like relocating to a tropical country or getting a second home. 

Several factors, including your lifestyle, inflation during retirement, and willingness to downsize, affect the amount you need to be happy during retirement.

So, without further ado, here are the figures worth shooting for you can be happy in retirement: 

By the Time You’re 50 

GenXers should have saved at least seven times their annual incomes by the time they turn 50. 

For instance, your annual income is $60,000. Hence, you need at least $420,000 to be comfortable and happy during retirement. 

By the Time You’re 60 

The amount jumps to 11 times your annual income at 60.

For instance, your annual income is $60,000. Hence, you need at least $660,000 to be comfortable and happy during retirement. 

How Much GenXers Need to Save to Prepare for Retirement

Here’s how much you have to save at certain ages to live happily during retirement:

At Your 20s

Save 25% of your gross pay during your 20s. This can be a combination of savings, retirement accounts, and investments.

This number can go lower if you’re paying off a student loan.

At Your 30s

Save at least one year’s worth of your salary when you turn 30. For instance, if you make $100,000 annually, do your best to save $100,000. 

Saving double your annual salary should be the goal by the time you turn 35. 

At Your 40s

You should have saved at least four times your annual income when you reach 40. By the time you’re 45, you should have at least five times your annual income saved.

Again, this can be a combination of savings and investments. 

Conclusion

Depending on factors like your lifestyle and age, you need to save to be happy during retirement. 

But there’s nothing more fulfilling than chasing your dreams, even during retirement. Trust me, I know! I pursued my dream of being an entrepreneur when I retired.

Do you want to be a second-act entrepreneur? My book might just be the answer. It’ll show you that it’s never too late to start your dream business. Check it out now!