As Generation X approaches retirement age, many are feeling serious anxiety about their financial future. New data shows that a large share of Gen Xers are worried they will not have enough money saved to retire comfortably, even as the first members of this generation turn 60. More than 80% of this group say they fear they won’t have enough money for their desired retirement lifestyle, according to a recent survey shared with Yahoo Finance.
Gen X typically defined as people born between 1965 and 1980 is now facing the consequences of decades of delayed retirement planning. Many put off saving in earlier years due to competing financial pressures like mortgages, student loans, and childcare costs.
A Big Gap Between Expectation and Reality
Retirement Savings Expectations vs. Reality
According to the survey, the average Gen Xer expects to retire with around $711,771 saved. But many believe they’ll actually need closer to $1.2 million to live comfortably in retirement. That leaves a savings gap of nearly $500,000 for many workers.
Experts say this shortfall stems in part from the fact that Gen X entered the workforce at a unique time. Defined benefit pensions were becoming less common just as employer-provided 401(k) plans were emerging. These early retirement plans lacked features that later became common, like automatic enrollment and automatic contribution increases. Because of this, many Gen Xers saved less than younger generations now do.
Why Gen X Is Behind on Retirement Savings
Early Career Challenges
Many Gen Xers started saving just before or during major economic downturns. They spent early career years navigating the dot-com crash, the 2008 financial crisis, and market upheaval during the COVID-19 pandemic. These events stole years of potential growth from retirement accounts.
Compounding the problem, Gen Xers often carry high amounts of household debt. Many have credit card balances, student loans, and mortgage payments that make it harder to put money aside for the future. Nearly a quarter of Gen Xers enrolled in workplace retirement plans have borrowed from their accounts a rate higher than that of other generations to cover emergencies or everyday expenses.
Competing Financial Pressures
The “Sandwich Generation”
Gen X is often described as the “sandwich generation” because many members are financially supporting both children and aging parents at the same time. Balancing these responsibilities makes it harder to funnel money into long-term savings.
High living costs and rising inflation also eat into savings potential. Recent studies show Gen Xers are more worried about inflation’s impact on retirement savings than other age groups, with many saying it has limited their ability to save as much as they’d like.
A separate survey found that Gen Xers are more likely than younger or older generations to say they haven’t been able to contribute as much to retirement savings because of inflation and higher living costs.
Taking Action to Catch Up
Steps Gen X Is Taking
Although the savings gap is real, many Gen Xers are now taking action as they near retirement. Some are:
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Cutting discretionary spending to free up more cash.
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Increasing contributions to retirement accounts, including 401(k)s and IRAs.
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Seeking professional financial advice to strengthen long-term plans.
Many financial advisors stress the benefits of “catch-up contributions” extra money that older workers can put into retirement accounts beyond standard limits. Gen X workers aged 50 and older can make additional contributions, which can significantly boost savings in the final years before retirement.
Budgeting closely to avoid lifestyle creep where spending increases as income rises is another strategy becoming more common. By trimming unnecessary expenses, individuals may free up funds for retirement contributions.
Financial Education and Strategic Planning
Seeking Help from Professionals
Experts recommend that Gen Xers still unsure how to tackle their retirement gap connect with a financial advisor. A trusted professional can help build a clear roadmap with realistic goals.
Financial planners can offer guidance on maximizing tax-advantaged accounts, optimizing investment mixes, and balancing risk and growth. They can also help set emergency funds aside so people don’t have to tap retirement savings when unexpected costs arise.
Retirement Safety Nets: Social Security and Delay Benefits
Planning Around Social Security
Another strategy is to delay claiming Social Security benefits. While Social Security can be claimed as early as age 62, waiting until full retirement age or later can increase monthly benefits significantly. Many Gen Xers are adjusting their plans to maximize the benefit they receive in later years.
Experts warn that retiring too early can mean smaller Social Security checks for life, so delaying benefit claims is often part of a strategy to ensure stronger retirement income.
Why This Matters Now
With the oldest Gen Xers already hitting 60, the issue of retirement readiness is no longer a distant worry. It’s an immediate concern that affects household finances, healthcare planning, housing decisions, and life goals.
When people feel unsure about their financial future, it can create stress and make important life decisions like when to retire or whether to keep working more difficult. Financial security in retirement isn’t only about money; it’s about peace of mind and the freedom to enjoy later life without constant financial worries.
Expert Views on Gen X Retirement Prep
Some financial experts point out that Gen X doesn’t have to feel doomed. There’s still time to boost savings, especially for those in their peak earnings years. Strategic planning, consistent contributions, and regular reviews of retirement accounts can make a measurable difference in outcomes.
One key to progress is prioritizing retirement more urgently. Many Gen Xers admit they didn’t treat retirement as an urgent goal until they reached their 50s, which has limited their long-term savings gains.
Stories From the Generation
Across online forums and social discussions, many Gen Xers share real worries about retirement. Some express fear that their savings won’t stretch long enough, while others make light-hearted comments about “planned early collapse” or jokingly suggest unconventional retirement plans. These posts reflect the anxiety many feel as retirement gets closer.
Even among those who are saving diligently, the path to a secure retirement can feel uncertain. Conversations often explore different approaches, from aggressive saving to alternative living arrangements in retirement.
A Reality Check With Hope
The retirement savings gap for Gen X is real, and many feel the pressure. But awareness is growing, and people are taking steps to improve their situations. Adjusting spending habits, boosting contributions, and seeking professional guidance can help close the gap.
With thoughtful planning and decisive action, many Gen Xers still have a chance to build a retirement that meets their goals, even if they’re playing catch-up later in life.