Denzel Rodriguez explains why Gen X faces retirement anxiety. Social Security replaces only 30% of pre-retirement earnings, and many lack pensions. Those who withdrew from 401(k)s during the 2008 crash or COVID downturn need their portfolios to earn roughly double the normal return just to break even.
You have this entire generation that are between the ages of 50 and 65 and up that are freaking out. Many of you are in the room freaking out about how the heck am I going to retire if Social Security is only covering like 30% of my income? I don't have a pension. I have a 401k. But when, when you look at the period that that person was contributing to their 401k, How many losses did they have to participate in between 2008, COVID 2020, or some massive down years? So can you imagine being 59 years old, 62 years old, 65 years old in 2020 during COVID and the stock market went like that, but you had to take income out of that same account? Guess what? The amount of money it took to, to recover almost requires double the rate of return.
