Generation X is very pessimistic about achieving a comfortable retirement, a new study shows. The main reasons for this are very high expectations, low retirement savings and concern about the future of Social Security, now that company pensions are a thing of the past. The study found that 37% said they would like to have between $1 million to $5 million saved for retirement, even though they did not have the ability to save such a sum. In fact 21% said they had not even started saving and 40% said they had saved less than $25,000 for retirement. Nevertheless people of Generation X are far ahead of previous generations when it comes to the matter of saving, investing and planning for retirement. Nearly 70% of young people between 25-34 years of age have started an investment plan for their retirement years. By contrast only 34% of the people who are now reaching retirement age , say that they began saving or investing for retirement before they were 34 years old.
However as regards the future of Social Security, opinion is divided.Many economists feel that a financial crisis is imminent while others say that there is no reason to worry for quite some time to come. To get a fair idea of the strains on the Social Security system it is necessary to look at some basic facts and figures. In 1940 the the ratio of people working and supporting the system, to people receiving benefits under Social Security was 42 to1. By the year 2000 it had dropped to 3 to 1 and by the year 2044 it is projected to touch 2 to 1. It is quite clear that the Social Security system in its present form will not survive. It is imperative for the Generation Xers to plan for their own future financial security, and that of their family.