Gen Xers are so unprepared for retirement that they are called “Silver Squatters” because 1 in 5 rely on their children for help

Generation X has been given many names over the years. They started out as the MTV generation, became known as the “latchkey kids” and were labeled America’s Forgotten Middle Child. But as retirement looms ever closer for Gen Xers, a new term is popping up in conversations that captures the anxiety and uncertainty many feel: “Silver Squatters.”

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It’s a phrase that vividly paints the picture of a generation facing a looming financial crisis as they approach their 50s without the cushion needed for a secure retirement. “Silver” nods to the gray hair that comes with age, while “squatters” suggests a scenario where these individuals might find themselves with their grown children—a last resort due to inadequate retirement savings.

See also: Can you guess what the average retirement account balance is? Here’s a hint – it’s just a little more than a year’s worth of expenses.

Looking down on the financial facts

Let’s face it, the numbers don’t lie and they aren’t pretty. A recent Prudential Financial survey highlighted a sobering reality: the average retirement savings for 55-year-olds is just $50,000. It is far from what is recommended for a comfortable retirement. Here’s why—many Gen Xers are caught in the “sandwich generation,” trying to financially support their children and aging parents while worrying about their retirement. It’s a hard point.

Leaning on Family: An Unspoken Expectation

With savings tight, more Gen Xers are starting to look to their families for support in their golden years. Nearly 25 percent of 55-year-olds rely on financial help from their children, especially Millennials and Generation Z. But here’s the thing—many haven’t even broached the subject with their families yet. Imagine the surprise – and potential strain – this could cause going forward, especially for younger generations who may already be going through their own financial hurdles.

See also: Number of “401(k)” millionaires up 43% over last year – Here are three ways to join the club.

The Perfect Storm: Economic and Social Pressures

So how did we get here? The Silver Squatters’ predicament isn’t just the result of poor planning. It’s 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 the future of Social Security — thanks to funding concerns and possible benefit cuts — and it’s no wonder there’s so much anxiety.

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Finding a way forward: strategies to consider

However, it is not lost. Financial experts suggest some strategies that could help this generation catch up, even as retirement approaches:

• Boost Savings: Now is the time to cut unnecessary expenses and maximize your retirement account contributions.

• Consider Part-Time Work: A part-time job could provide additional income without breaking the bank any time soon.

• Delaying Social Security: Waiting a few extra years to claim Social Security benefits can result in higher monthly payments, providing financial stability later.

Trends: A billion dollar investment strategy with minimums as low as $10 — you can become part of the next big real estate boom today.

The power of communication

Perhaps the most important step Gen Xers can take right now is to have open and honest conversations with their families about their retirement plans and potential needs. Addressing these realities sooner rather than later can help everyone prepare for what lies ahead, both financially and emotionally.

The emergence of Silver Squatters reminds us of the importance of proactive financial planning. As Gen Xers face these challenges, it’s critical that they take the lead and build a comfortable retirement.

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This article Gen Xers Are So Unprepared For Retirement They’re Called ‘Silver Squatters’ Because 1 In 5 Rely On Help From Their Kids, originally appeared on Benzinga.com

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