Gen X Is Retiring Soon. Are They Ready?

Gen X retiring soon

28

July

Gen X Is Retiring Soon. Are They Ready?

July 28, 2025

In Retirement Mistakes, Retirement Savings

Gen X is retiring soon. Are they ready?

The outlook isn’t great.

Gen X is the first generation to rely primarily on their own individual savings through 401(k)-like plans for retirement.

They were tossed into DIY retirement planning with little support.

As a result, many members of Gen X will not be able to retire at the traditional age.

Read on to learn more.

Where Gen X Stands Financially

Gen X retiring soon

Nearly half of Gen Xers say their retirement savings are behind schedule, according to the newly released Goldman Sachs Retirement Survey.¹

“According to a 2023 report from the National Institute on Retirement Security, the average balance for private retirement accounts among Gen X workers was just shy of $130,000 as of December 2020.”²

World at Work adds, “The median account balance among those same workers was just $10,000, indicating that a small number of disproportionately high account balances skewed the higher mean average listed above.”³

Additionally, the research found:

40% of Gen X workers had a zero balance in their retirement accounts.
48% of them (more than millennials or Baby Boomers) have done no retirement planning.
34% are afraid they’ll go broke in retirement due to healthcare costs.
70% believe they’ll retire later than expected or not at all.⁴

How They Got There

Gen X retiring soon

A combination of changes and issues has led Gen X to where they are today.

Financial advisor Trevor Houston explains, “[Gen X] were the test pilots of the 401(k) era. Thrown into DIY retirement planning with little to no guidance. Many got lost in the shuffle.”⁵

Not only were they the 401(k) experiment generation, but they are also facing a different reality than the generation before them.

Mindy Yu, senior director of investing at New York-based Betterment at Work, explains, “Gen X is likely facing a very different retirement reality than boomers: Fewer pensions, longer life expectancies and rising health care costs mean they need to save more on their own.”⁶

Additionally, Gen X is right in the middle of the sandwich generation.

They are raising their own children AND taking care of their elderly parents at the same time.

[Related Read: How to Deal with Financial Stress of Taking Care of Kids and Parents]

Is it any wonder many in this group are behind on retirement savings?

Where Should Gen X Be Financially?

Gen X retiring soon

According to Yahoo Finance, “Gen Xers say they will need, on average, $1.56 million in savings to retire comfortably, but to date, they have saved only an average of $109,600. More than 1 in 3 Gen X workers have dipped into their savings or taken out a loan to pay for monthly bills.”⁷

Unfortunately, the numbers aren’t great.

Many members of Gen X are significantly far from the estimated $1.56 million needed to retire.

But that doesn’t mean they should give up hope.

Constance Craig-Mason, founder of the Money TALK$ movement, suggests, “If you’re a Gen Xer hitting 50 with little to no retirement savings, I want you to know: This isn’t the end of your story. It’s your cue to get strategic, not stuck.”⁸

Tips for Gen Xers Retiring Soon

Gen X retiring soon

If you are a member of Gen X and feel overwhelmed by the future, don’t give up.

Trevor Houston suggests, “Retirement isn’t an age, it’s a math problem. And the sooner you face the numbers, the sooner you can start rewriting your future.”⁹

Use these tips to get your retirement on track.

Know Where You Stand

If you are one of those in Gen X retiring soon, we recommend you take an honest look at your finances.

It is difficult to know if and when you’ll be able to retire if you don’t know what you truly have saved, what assets you have, or what debts you owe.

In other words: You can’t fix what you can’t face.

Have a Clear Plan

According to Yahoo Finance, “Even now, half haven’t calculated how much total retirement savings they’ll need, how to save and invest to achieve that goal, or when they can afford to retire. That’s significant as the oldest in this cohort will turn 60 next year.”¹⁰

[Related Read: Americans Lack Plans for Retirement Income]

Once you know where you stand, it’s time to make a plan. Determine when you think you want to retire, how much you’ll need to retire comfortably, and plan to save this amount.

Track Down Old 401(k) Accounts

If you’ve changed jobs over the years, you may have more money in old 401(k)s than you realize.

Now is the time to track down old 401(k) accounts.

Contact your former employers and find the benefits administrator. Check online databases.

Boost Contributions

If you are behind on retirement savings, make every effort to boost contributions. Always contribute enough to earn the employee match.

Take Advantage of Catch-Up Contributions

Individuals 50 or older are eligible to make catch-up contributions.

The standard 401(k) contribution limit for 2025 is $23,500.

However, those 50+ are allowed to contribute an additional $7,500, bringing their contribution limit to $31,000.

In 2025, there is also a super catch-up contribution for those aged 60-63.

Individuals aged 60 to 63 may contribute an additional $11,250 instead of the $7,500 catch-up contribution that those 50 – 59 and 64 and older may contribute.

This means that rather than having a contribution limit of $23,500, those in this group can potentially contribute up to $34,750 in total to their 401(k) plan.

Earn Extra Money

If you are behind on retirement savings and still plan to retire in the next decade, it may be wise to get a second job to earn some extra money.

Side gigs have increased in popularity, and many Gen Xers are embracing working outside of traditional jobs to boost their income.

Don’t Wait to Get Help

Given that Gen X is called the 401(k) experiment generation or even 401(k) test pilots, they may need some extra help figuring out their 401(k)s.

That’s what we are here for.

Our goal is to increase your account performance over time, manage downside risk to minimize losses, and reduce fees that are hurting your retirement account performance.

You receive professional quarterly 401(k) account rebalancing that is personalized to your tolerance to risk and based on current economic and market conditions.

Find out what 401(k) Maneuver may do for your retirement account balance. Click below to book a complimentary 15-minute 401(k) Strategy Session with one of our advisors today.

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