Getting Gen X Back on Track for Retirement

In 2025, the eldest members of Generation X—generally defined as the cohort born between 1965 and 1980—entered their 60s, and multiple studies focused on their reported lack of preparedness for retirement, intensified by their status as a “sandwich generation” simultaneously caring for aging parents and supporting young-adult children.

In a Nationwide Mutual Insurance Co. survey of 580 non-retired Gen X respondents from August and September, 61% said retirement had not been an urgent priority until they were in their 50s, 16% said they were retiring later than hoped, and 15% said they did not know if they could ever retire.

Kerry Hannon, author of “Retirement Bites: A Gen X Guide to Securing Your Financial Future,” said that Gen X was given a rough hand in terms of access to retirement savings opportunities at the workplace.

“When [Gen X] was starting out in the workplace, the 401(k) had just dipped its toes into the workplace plans,” Hannon said at the Employee Benefit Research Institute’s 2025 Financial Wellbeing Symposium in Washington, D.C., on December 11. Not only did access to pensions decline as they were working, but members of Gen X were also too comfortable living off of easily accessible credit and likely were among those that cashed out a 401(k) account from a previous employer as they changed jobs.

Now, many Gen Xers share a need to catch up with retirement savings. In the same Nationwide study, one-quarter of Gen X respondents said insufficient emergency savings were an obstacle to retirement, and one-third had concerns about health care and insurance costs.

Experts say the first step to understanding and changing one’s financial situation can come from seeking a financial adviser or using free or low-cost retirement planning resources provided by employers.

“Many retirement savers don’t understand how their savings will translate to income in retirement—and that blind spot is likely contributing to their anxiety,” wrote Suzanne Ricklin, Nationwide’s vice president of retention and sales, in an email.

Making Financial Plans

When Evan Potash, a wealth management adviser with TIAA, meets with his clients in the Philadelphia area, he tells them to start saving immediately, if they are not already. His checklist of client priorities includes making a financial plan, looking at expenses for ways to save, building up emergency savings, paying off debt and making sure clients get the employer’s match on their retirement plan.

“The answer is always: Save more, work longer or cut expenses,” Potash says. “It comes down to budgeting the savings, then doing some projections and reviewing that plan [at least] annually.”

In the Nationwide survey,   High-earning clients nearing the ages of 60 to 63 should talk with advisers about the new Roth catch-up contribution rules that start going into effect in 2026. Guaranteed income, whether an annuity or another insurance product, may be another topic to consider.

Postponing Social Security benefits can make a big difference in retirement income, given the 8% increase for each year recipients delay claiming benefits past Social Security’s full retirement age (age 67 for those born in 1965). Hannon advised waiting to claim maximum benefits until age 70, if possible, but acknowledged there could be health reasons for early withdrawal, or a married person could claim earlier than a higher-earning spouse. She strongly disapproved of online influencers suggesting that early claimants should invest their Social Security benefits, saying “Guaranteed income is a real risk to invest.”

As advisers help clients figure out financial plans, Ricklin said “more flexible communication” can help ensure that pre-retirees are setting and meeting goals. “Keeping in touch with [clients] regularly will ensure you can help guide them through the home stretch of retirement planning,” Ricklin wrote in an email.

Rethinking Retirement

Some clients approaching the “traditional” retirement age of 65 may be concerned that ending a career could mean a loss of purpose or identity. Potash says a tearful client recently told him that “working was his life,” and he reminded the client of his wish to spend more time with grandchildren.

“I reminded him about what his life is truly about, which is family and experiences—not things,” Potash says. “After we went through financial planning and we talked it out, he’s going to retire at 70.”

Other people may want to change the nature of their career, switch to part-time work or focus on a lifelong interest. Hannon said a phased retirement can help older adults maintain mental and physical health and prevent loneliness, all of which can help prevent major longevity risks.

Potash, whose clients include many doctors and academics, saw a physician leave medicine at age 65 to start a coaching business for C-suite executives and saw a former professor turn a hobby of furniture-making into an income-building venture. A 93-year-old scientist who wanted to continue his seven-decade career also became involved in philanthropy and included family members in his charity work.

“It’s about happiness, like, ‘I want to stop the daily grind. I’m able to do so. I’m going to do something else,’” Potash says.

After writing a book about Gen X, Hannon said that generation’s “scrappy ethos” and resilience will serve them well as they figure out unique approaches to retirement to match the previous phases of their life stages. Poised at their peak earning years, Gen Xers can change their retirement outlooks, so long as they make well-informed financial decisions.

“Gen X is facing headwinds, but there’s lots of runway to make adjustments,” Hannon said.

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