As the first wave of Generation X turns 60 this year, most of the cohort admit they are unprepared for retirement.
Almost 70 percent of a cross-generational pool of 10,000 people in a March report said they wouldn't have enough savings by the time they plan to retire. This isn't a strong outlook for American adults of any age, yet Gen X is even less prepared. Another last year showed less than 15% of Gen X-ers thought they had saved enough money to leave the workforce for good.
The cohort, born between 1965 and 1980, is on a unique pathway to retirement as the first generation to rely predominantly on 401(k) plans rather than traditional pensions. This has placed the onus on them to be financially ready.
With such low optimism about their prospects, how can this aging generation get their financial house in order while still earning a paycheck? A diverse group of bring their insights into what makes this generation tick and how to get retirement-ready in time.
An Overlooked Generation
Generation X typically doesn't attract as much media attention as boomers and millennials. Yet they also face their own economic circumstances, which are as unique as the larger groups on either side.
"Gen X is at a pivotal crossroads," says Arieller Tucker, Founder of . "They are less likely to have the generous pensions boomers enjoyed, yet grapple with some the same economic pressures as millennials (cost of living, job uncertainty). While some Gen Xers are well-prepared, many feel the pinch of delayed savings and the burden of debt."
"Many Gen X'ers are behind on retirement savings due to stagnant wages and the decline of pensions," says Charles Petitjean, who runs his . "Gen X'ers need to be much more self-sufficient… many will need to maximize contributions, delay Social Security, and consider part-time work in retirement to stay financially secure."
Sandwich Press?
Yet saving for yourself is hard while supporting others. Generation X is going through the mid-life squeeze of caring for (and often paying for) both growing children and late-age parents. When a group goes through this period, it is known as the "sandwich generation."
"Studies are showing about one in four Gen X-ers are financially supporting both their kids and their parents, so this isn't rare — it's a reality for a lot of families right now," says Melody W. Townsend, Founder of .
Advisors say they need support pillars and safety nets to get through this peak period.
"Those who handle it best have a solid plan… and are talking to their families, using support networks, and leaning on professionals when needed," says Townsend.
"Having adequate term life insurance and disability insurance to replace their income is critical," says Cecil Staton, Founder of . "Losing an income to death or disability could financially ruin the kids and parents of sandwiched clients."
Social Insecurity
Social Security underpins the welfare of many American retirees. Yet, over 70 percent of participants in Transamerica's survey said they worry about its future.
Media pundits and economists speculate on the topic frequently, and the risks of future insolvency are hotly debated. Recently, the issue has become politicized from the Trump administration's government efficiency push could make it harder to access pensions.
Could Gen-X retirees have the safety net cut from underneath them?
"I have heard these same fears for my 28-plus years in the profession," says Lawrence Sprung, Founder and Wealth Advisor at . "There have been changes to Social Security to maintain its viability, and there will be more to come. That being said, I do not believe it is going to go away completely, but it may not be the same as it is today a decade from now."
Indeed, the benefit is due to be revised downward shortly. According , the U.S. revenue base will only be able to fund around three-quarters of scheduled benefits at current taxation rates by the mid-2030s. The authority predicts that this shortfall should stabilize depending on changes to the tax regime, and the Social Security program should return to solvency.
"While I don't share the extreme pessimism, I do plan for my clients to not be entirely reliant on Social Security," says Petitjean. "In our planning, we typically illustrate them receiving 50% of their Social Security benefits so that we can be confident that their retirement isn't affected by future adjustments to the Social Security program."
Never Too Late
While the future looks a little bleak for many X-ers, there is still time to turn things around.
"My advice is: don't waste time beating yourself up—just start now," says Townsend. "Get clear on how you spend, save, invest, and handle taxes. Max out retirement plans, such as their employer's 401(k), especially if there is a company match – do not leave employer matching dollars on the table."
"And look for ways to build in flexibility — whether that's through rental property, a plan to work part-time, or a side income," he continued.
According to a , almost 40% of Americans already have a side hustle, and 61% of side hustlers say their lives would be unaffordable without it. Gen X may want to take advantage of this trend, too.
"Procrastination is the real enemy — taking action today makes all the difference," says Jason Gilbert, Founder and Managing Partner of . "Retirement savings isn't just about what you contribute — it's about how you allocate and grow those funds. Maxing out tax-advantaged accounts like 401(k)s and IRAs, leveraging catch-up contributions, and investing with a long-term mindset is critical.”
“If you only have 10-15 years, there's still time to make a meaningful impact by increasing savings rates, optimizing tax strategies, and ensuring your portfolio is positioned for growth."
While Gen X-ers face unique challenges as they decide , with strategic financial planning, maximizing retirement contributions, and leveraging side hustles, this aging generation can still secure their future. By starting now with a thoughtful plan of action or who can assist, their post-work future may still look bright.