It's hard to believe, but the members of Generation X now have retirement looming on the horizon.
The roughly 65 million Americans born between 1965-1980 are slated to pass Boomers in numbers by 2028, and are controlling over a quarter of the nation's money as wealth passes from one generation to the next.
That means they'll be facing big financial responsibilities in the coming years: Filling up their own retirement funds, protecting their assets, launching their adult kids, and caring for elderly parents, all at the same time.
But the reality is Gen X is not yet where they need to be in their savings. The average 401(k) balance for Gen X is $192,300, according to Fidelity; while they are making progress, it's still not ideal for a retirement that could last 20-plus years.
So, there is still much work to be done. Some key questions to help Gen X navigate their prime earning years:
How can I save more for retirement?
The 50s are a make-or-break period for your retirement accumulation, and the good news is that the tax code allows you to save more than everyone else. So-called 'catch-up' provisions permit those over 50 to save thousands more, every single year, in their 401(k)s and IRAs. That will put your savings into turbo mode, if you are disciplined enough to take full advantage. With a long runway still ahead, don't be too conservative in your investments, but make sure you still have plenty of growth potential.
How can I protect what I have?
Now that Gen X has accumulated assets, it's more important than ever to preserve them. That means reviewing your insurance coverage in multiple areas of your life: Home, auto, health, disability, life. It's also an excellent time to look into long-term care policies, while premiums are still affordable. Another tip: An 'umbrella' liability policy, which essentially sits on top of other policies like auto and home, can protect your assets to the tune of millions of dollars.
How do I help my own parents?
This is a period of life when caring for elderly parents can start to become very demanding, both emotionally and financially. In fact you may have to be making many money decisions on their behalf, especially if there is dementia involved. So help them navigate complex system like Medicare and Social Security; involve siblings for support, so the entire burden doesn't fall on you; tap state and federal assistance when appropriate; and be smart about using their own assets to fund their retirement, instead of everything coming out of your own pocket.
How can I launch my adult kids?
Those in their 50s are typically steering their kids through their college years and launching them into the working world. It is normal to help them financially, if you are able; most parents do, according to the Pew Research Center.
With big expenses like college tuition, feel free to help if you can, but don't do it at the expense of your own future. Remember that they can borrow for school -- but you can't borrow for retirement.