Generation X has passed by many names through the years. They began because the MTV generation, became generally known as the latchkey kids, and were labeled America’s Forgotten Middle Child. But as retirement looms closer for Gen X, a latest term is popping up in conversations that captures the anxiety and uncertainty many are feeling: “Silver Squatters.”

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It is a phrase that vividly paints an image of a generation grappling with a looming financial crisis as they edge into their mid-50s without the cushion needed for a secure retirement. The “silver” nods to the graying hair that comes with age, while “squatters” suggests a scenario where these individuals might find themselves bunking with their adult children – a final resort on account of inadequate retirement savings.

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Staring Down the Financial Facts

Let’s face it, the numbers don’t lie, and they are not pretty. A recent Prudential Financial survey has laid out a sobering reality: the median retirement savings for 55-year-olds stands at just $50,000. It is a far cry from what’s really useful for a cushty retirement. Here’s the kicker – many Gen Xers are caught within the “sandwich generation” squeeze, attempting to financially support their kids and aging parents while also worrying about their retirement. It’s a tricky spot.

Leaning on Family: An Unspoken Expectation

With savings falling short, more Gen Xers are beginning to look toward their families for support of their golden years. Nearly 25% of 55-year-olds are banking on financial help from their children, particularly from Millennials and Gen Z. But here’s the catch – many have not even broached this topic with their families yet. Imagine the surprise – and potential strain – this might cause down the road, especially for younger generations who might already be navigating their very own financial hurdles.

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The Perfect Storm: Economic and Social Pressures

So, how did we get here? The predicament of the Silver Squatters is not just the results of poor planning. It is also a product of larger economic forces, including inflation, the decline of traditional pension plans, and widespread financial illiteracy. Add to that the looming uncertainty about Social Security’s future – because of funding concerns and possible profit cuts – and it’s no wonder there’s a lot anxiety.

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Finding a Way Forward: Strategies to Consider

All just isn’t lost, though. Financial experts suggest just a few strategies that would help this generation catch up, even when retirement is just across the corner:

• Boost Savings: Now’s the time to in the reduction of on unnecessary spending and max out those retirement account contributions.

• Consider Part-Time Work: A component-time job could provide extra income without dipping into savings too soon.

• Delay Social Security: Waiting just a few extra years to say Social Security advantages may end up in higher monthly payouts, offering more financial stability later.

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The Power of Communication

Perhaps crucial step Gen Xers can take straight away is to have open and honest conversations with their families about their retirement plans and potential needs. Addressing these realities sooner quite than later may also help everyone prepare for what’s to come back, each financially and emotionally.

The emergence of Silver Squatters reminds us of the importance of proactive financial planning. As Gen X faces these challenges, it’s crucial that they take the initiative and carve out a cushty retirement.

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This text Gen X Is So Unprepared For Retirement They’re Being Called ‘Silver Squatters’ Because 1 in 5 Are Counting On Help From Their Kids originally appeared on Benzinga.com

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