Roth IRA Rules

What are Generation X Retirement Plans? Let's start by defining exactly what "Generation X" means. Generation X is a definition of the segment of population born between 1965 and 1985 in USA. The generation Xers had a reputation of slackers who lived under the shadow of their dynamic and rebellious Boomer parents. In present days, generation x people are in their 30s and 40s and are proving themselves as being hard workers and able to carry complete responsibility for their families, but at the same time are not so well prepared regarding their financial future. According to the latest stats, more than 50% of all Gen Xers are so behind in terms of money and have so many debts that they can't even think of saving any.

There are certain things about the environment and the world that they lived in during their youth that made generation X the way they are today. Those folks were raised by Baby Boomer parents which of course was a big influence. They were raised in times of economic recession, followed by technological explosion, split households, layoffs, and all types of drugs, bad habits and rock and roll. Maybe that's why in present days, that group of people is skeptical about investments and economy. The main thing is that Gen X is spenders, not savers so they haven't really thought about retirement plans. That generation (or at least a major part of it) lives day by day. And indeed, all the expenses that Gen Xers make for buying a car, house and all the other regular possessions often leave them without any money saved for their retirement days. Also, a lot of Xers still carry their college loans and once they have kids, they have to worry about getting money for their education so you see how deep the financial problem gets.

Other factors that add up to the whole financial problem are that the cost of living is increasing all the time. The educational costs are rising all the time, people are tied to big mortgages and credit cards, which is something that came right on time for the X people. Reports show that half of the Xers have at least $5,000 outstanding credit card balance in 2006. And you won't surprised that nearly half of the women interviewed by Oppenheimer Funds openly admitted they would rather spend money on new shoes than save for retirement. It's all about the 'live for the moment' philosophy that seems to be causing it.

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