Sandwich Generation’s Financial Pressures Erode Retirement Confidence

The oldest members of Generation X turn 60 this year, and 54% think they will not be financially ready for retirement, according to Northwestern Mutual’s 2025 Planning & Progress Study.

In the study, Gen X respondents said they will need an average $1.57 million to retire comfortably—$310,000 more than the “magic number” national average the firm revealed in April.

“Many Gen Xers are juggling responsibilities on both ends, supporting aging parents while still helping their children,” said Jeff Sippel, Northwestern Mutual’s chief strategy officer, in a statement. “They’re also the first generation to truly feel the impact of the move from defined benefit plans to defined contribution plans. All of this puts more of the burden of financial planning on their shoulders.”

Confidence Concerns

More than half (56%) of Gen X members surveyed said they were likely to outlive their savings, compared with 40% of Baby Boomers and older generations— “Boomers+”—who thought the same. In turn, Gen X members expressed the most concern about leaving an inheritance, with only 26% expecting to do so, compared with 32% of Millennials and 30% of Boomers+.

The researchers also found that Gen X respondents had much less clarity than Boomers+ on a range of issues in their financial lives, including how inflation and taxes could impact their retirement and strategies to address health care and long-term needs.

Gen X members’ confidence in their financial planning lagged that of Boomers+ in every statement presented. The most drastic disparity was between the two generations’ responses to the statement, “I have a plan to address health care costs in retirement”: 65% of Boomers+ indicated that they had a plan, compared with only 45% of Gen X respondents.

Understanding and Clarity Around Factors That Could Impact Financial Plans

Source: Northwestern Mutual 2025 Planning & Progress Study

“The nature of support is changing,” Sippel said in his statement. “Parents are living longer and that’s compelling Gen X to provide more extended financial assistance than Boomers did with their parents. Plus, Gen X’s children need more support with the cost of college, child care, health care and housing all going up.”

Half of Gen X respondents reported having a “financial blind spot” in managing their finances, claiming they placed too much emphasis on building wealth and growing assets, without dedicating enough to protecting assets.

“Growth without protection can leave people vulnerable,” Sippel said in his statement. “Especially as you get older, safeguarding what you’ve built is just as critical as continuing to build.”

Nearly half (48%) of Gen X members stated they plan to work in retirement or are already doing so. More than half of those who did (56%) said they would do so out of necessity, to be able to afford retirement.

Dealing with ‘Burning Questions’

It should come as no surprise that finances have been keeping Gen X up at night. More than one-third (35%) of Gen X respondents said uncertainty about their finances keeps them up late at least once a month, compared with 14% of Boomers+.

Relatedly, one “burning question” weighing on roughly half (47%) of Gen X respondents is whether Social Security will be there when they qualify for it. Millennials, farther from retirement than Gen X, reported slightly less concern (39%).

Northwestern Mutual also found that Gen X trails Boomers+ across various health and wellness issues. For example, while 72% of Gen X members surveyed said their mental health is in a strong state, 89% of Boomers+ reported strong mental health. As for physical health, 71% of Gen X respondents said they were strong, four percentage points fewer than Boomers+ (75%).

But there may be a way to navigate some of the financial uncertainty, based on one area in which Gen X trails Boomers+, the report suggested. Nearly one-third (33%) of Gen X respondents said they work with a financial adviser, while 43% of Boomers+—the self-reported more confident and healthier cohort—said the same.

“A financial advisor can bring structure and strategy to what otherwise might feel overwhelming,” Sippel said in his statement. “For Gen X, who are navigating a complex mix of responsibilities and goals, that kind of support can make the difference between feeling lost and feeling empowered.”

Data came from the Harris Poll, which conducted 4,626 online interviews among the general U.S. adult population, oversampling high-net-worth individuals, from January 2 through 19.