What Retirement Looks Like for Gen X: The Forgotten Generation

For decades, nearly every conversation about retirement has focused on Baby Boomers—their savings habits, their spending power, and their mass exit from the workforce. But quietly, another generation is stepping into view.

Generation X, born between 1965 and 1980, are entering a pivotal stage of life. With the oldest turning 60, retirement is no longer a distant concept but an approaching reality, one that looks far different from their parents’ generation.

Boomers had defined-benefit pensions, steady home appreciation, and decades of economic growth. Gen X has faced recessions, layoffs, rising debt, and fewer safety nets. They have worked hard, raised families, and adapted to change, often without the same level of financial security their parents enjoyed.

Now, many are asking: What will retirement actually look like for us?

The First “DIY Retirement” Generation

Gen X is the first generation expected to build and manage their own retirement savings almost entirely. Their parents often had pensions and employer-provided income in retirement. For Gen X, the shift toward 401(k)s and IRAs placed more responsibility on individuals to plan and invest for their future.

According to a Goldman Sachs 2023 report [1], nearly 45% of Gen Xers feel behind on their retirement savings, the highest of any generation, and only about 55% have a personalized retirement plan.

This change isn’t about a lack of effort. It reflects how the retirement system evolved during their working years, moving from company-managed benefits to employee-managed accounts. Many Gen Xers did what they were told: they saved, invested, and stayed in the workforce. But the environment around them shifted in ways they couldn’t control.

The Sandwich: Supporting Parents and Kids

If you ask most Gen Xers why they feel stretched, the answer is simple: they’re taking care of everyone.

This generation is often called the “sandwich generation.” Many are helping aging parents with healthcare or financial needs while also supporting children through college or early adulthood.

A 2024 Pew Research study [2] found that about 54% of people in their 40s have at least one parent aged 65 or older and are also raising a child under 18 or providing financial help to an adult child. In comparison, this is true for 36% of adults in their 50s.

This dual responsibility makes it difficult to prioritize personal savings. Even those who know the importance of retirement planning often find their income going toward others first. For many, it’s not a question of discipline, but one of competing priorities.

If you’re balancing family support with saving for your own future, you’re not alone. Many retirees and pre-retirees face the same challenge. Our article, Legacy vs. Lifestyle: Protecting Your Retirement While Supporting Your Family, explores practical ways to help loved ones without putting your long-term security at risk.

Debt and Delayed Milestones

Many Gen Xers entered adulthood during recessions, layoffs, or housing downturns. Those conditions led to delayed homeownership, extended student loan payments, and interrupted saving years.

According to a Business Insider article [3], Generation X currently earns the highest average income of any generation, with an annual mean of about $136,776. Despite their strong earnings, Gen Xers also carry the most debt, roughly $157,556 on average. Many Gen Xers are also still responsible for their own student loan payments or have taken out Parent PLUS loans. As of March 2024, Experian data show that the average borrower in this generation carried $44,240 in student debt—the largest average balance of any generation [4].

As a result, their window for focused saving is often shorter. They’re trying to build a retirement cushion while still paying off previous obligations, which can make progress feel slow.

Redefining What “Retirement” Means

Despite these challenges, Gen X is not giving up on retirement. They are redefining it. Coupled with the “sandwich” phase of life and cutting back on essential expenses, these financial pressures have prompted more Gen Xers to take on additional work. While younger adults remain the most likely to hold multiple jobs, the share of those ages 46 to 55 doing so has risen by more than half since early 2023 [3].

According to Northwestern Mutual’s 2025 Planning & Progress Study [5], nearly half of Gen X respondents (48%) say they plan to keep working during their retirement years or are already doing so. In contrast, only about 30% of Baby Boomers and older generations report the same. For many Gen Xers, this continued work is motivated by financial necessity rather than choice, as they feel they must earn income to sustain their retirement. About one-third (34%) anticipate working part-time in a new role, while roughly one-fourth (24%) expect to work full-time in a different position.

Where Gen X Can Focus Now

While every situation is different, there are practical steps that may help Gen Xers move forward with clarity:

1. Get a clear picture of your current situation.

Review savings, debt, and projected income sources. Understanding where you stand is the first step toward improvement. You can download our free, interactive How Much Can You Really Spend in Retirement? Worksheet and enter your own numbers to see where you may be ahead or behind.

2. Address high-interest debt.

Paying down debt with higher rates can create more flexibility later on, and it’s an important step many overlook as retirement approaches. For a deeper look at how debt can affect your retirement outlook, and what options may help you manage it, see our article, Retiring With Debt: What Are My Options?

3. Review your investment strategy.

The right investment mix in your 40s may not fit as well in your 50s or 60s. Review your allocations to confirm they still match your goals, time frame, and comfort level with risk. Small adjustments now can help create more stability later.

4. Use catch-up opportunities.

Those age 50 and older can contribute extra to 401(k)s and IRAs. These can make a meaningful difference over time.

5. Revisit your retirement timeline.

Flexible work, consulting, or phased retirement may allow for more gradual transitions and extended savings.

6. Coordinate with your spouse or partner.

Discuss timing, lifestyle goals, and financial expectations early to help align plans.

Next Steps for Gen X Retirement Planning

For Gen X, retirement may not come with a pension or a predefined path. But it doesn’t have to. This generation has always been resourceful, self-reliant, and forward-looking. Those same traits can help them navigate the changing realities of retirement, one informed decision at a time.

Every Gen Xer’s path to retirement looks a little different. If you’d like help seeing how your current plan stacks up or exploring potential next steps, our retirement professionals are available to walk through your situation with you.

The concepts expressed herein represent the views and opinions of Pension Consultants, Inc., and are not intended as legal, tax, or investment advice for any specific individual, account, or plan.

Source(s):

[1] Goldman Sachs. Retirement Survey & Insights Report 2023: Diving Deeper Into the Financial Vortex — A Way Forward. Goldman Sachs Asset Management, 2023, https://www.gsam.com/content/dam/gsam/pdfs/common/en/public/articles/2024/am-retirement-survey-generational-report-2024.pdf.

[2] Horowitz, Juliana Menasce. “More Than Half of Americans in Their 40s Are ‘Sandwiched’ Between an Aging Parent and Their Own Children.” Pew Research Center, 8 Apr. 2022, https://www.pewresearch.org/short-reads/2022/04/08/more-than-half-of-americans-in-their-40s-are-sandwiched-between-an-aging-parent-and-their-own-children/.

[3] Kaplan, Juliana. “6 Charts Show Why Gen X Is So Bummed About Money Right Now.” Business Insider, 2 Jan. 2025, https://www.businessinsider.com/gen-x-charts-show-struggles-bills-spending-need-more-work-2024-11. 

[4] Guevara, Elizabeth. “The Gen X Money Crunch: Pulled in Every Direction.” Investopedia, 2 Oct. 2025, https://www.investopedia.com/gen-x-is-struggling-financially-11820963.

[5] “Reality Bites: Gen X Is Nearing Retirement and More than Half Don’t Believe They’ll Be Financially Ready When the Time Comes, According to Northwestern Mutual Planning & Progress Study.” Northwestern Mutual Newsroom, 9 Sept. 2025, https://news.northwesternmutual.com/2025-09-09-Reality-Bites-Gen-X-is-Nearing-Retirement-and-More-than-Half-Dont-Believe-Theyll-be-Financially-Ready-When-the-Time-Comes,-According-to-Northwestern-Mutual-Planning-Progress-Study.