Gen X Faces Retirement Crisis as Savings Fall Short

As Generation X approaches retirement age, a growing financial crisis looms for this often-overlooked demographic. With average savings far below the recommended $1.5 million needed for a comfortable retirement, Gen Xers are grappling with the harsh reality of delayed retirements and reduced lifestyles.

According to a 2024 report by Natixis Investment Managers, 82% of Gen Xers acknowledge that they bear primary responsibility for funding their retirement. However, nearly half (47%) worry they may not be able to work long enough to secure their financial future. The report highlights that 60% are prepared to extend their working years, but unexpected career disruptions, such as health issues or caregiving responsibilities, could derail these plans.

Gen X, often dubbed the “Forgotten Generation,” faces unique challenges. Many are part of the “sandwich generation,” simultaneously supporting aging parents and adult children. This dual burden, combined with rising inflation and living costs, has left 70% of respondents reporting that inflation has negatively impacted their ability to save for retirement. Over half (55%) admit they are saving less due to increased daily expenses.

Financial advisors urge Gen Xers to maximize their peak earning years by taking advantage of catch-up contributions to retirement accounts. Despite these efforts, 48% of Gen Xers believe achieving a secure retirement will require a “miracle.” A separate study by the National Institute on Retirement Security found that around 40% of Gen X households have no retirement savings at all.

As Gen X navigates this precarious financial landscape, many are considering drastic measures. Nearly 10% fear they may need to sell their homes, while 11% worry about relying on friends and family for support. With retirement plans increasingly uncertain, this generation is redefining what it means to age with financial security.