Could Gen X Be More Scared of Retirement?

So no one told you life was gonna be this way (clap, clap, clap, clap)!

Generation X, long stereotyped as cynical and disaffected, is increasingly worried their retirements, like their love lives, are D.O.A. Some 28% of first-wave Gen Xers (ages 55–60) say they are extremely or very concerned about having enough money to retire comfortably, according to a survey from annuity provider Global Atlantic. That’s roughly double the level of anxiety reported by Boomers ages 61–75.

The remedy to those fears may not always be easy, but advisors can make a long-lasting difference. “There is no shortcut to catching up,” said Hardik Patel, founder of Trusted Path Wealth Management. He emphasized showing clients realistic scenarios and encouraging higher savings rates, delayed retirement or even part-time work if necessary.

The One Where No One’s Ready

Gen X faces a unique set of challenges. Many entered the workforce as pensions were disappearing and before automatic 401(k) enrollment became widespread. For years, they were largely on their own when it came to retirement planning, often with limited financial education. Some 56% of Gen Xers without pensions report “pension envy” (didn’t Joey sing a song about that)? Layer on top of that the dot-com crash and the 2008 financial crisis, which disrupted savings during critical earning years.

The study also found:

• Some 48% of Gen Xers expect to return to work after retirement due to financial concerns versus 21% of Boomers.
• Rising health care costs were the top retirement concern for both consumers and financial professionals.

Tax efficiency is one of the first places advisors should look when working with older Gen X clients, Patel told Retirement Upside. “Small adjustments to improve tax efficiency, including Roth conversions before they begin drawing Social Security, could make a significant difference,” he said.

MY SANDWICH GENERATION?! Despite their “whatever” reputation, Gen X is actually quite selfless, often stretched thin supporting both children and aging parents. With money flowing in multiple directions, saving for themselves becomes difficult. 

Still, some financial strain is avoidable, said Pat Logue, founder of Prudent Financial Planning. While many Gen Xers are juggling elder care and their own debts, some also take on Parent PLUS loans for their children’s education. “We remind them you can’t borrow for retirement, but your kids can borrow for college,” Logue told Retirement Upside. A better approach is to have children take on student loans, with parents helping repay them later if possible, he said.