Generation X, born between 1970 and 1979, is facing a retirement crisis. A recent survey revealed that 52% of Gen Xers don’t feel prepared for retirement. This is a concerning statistic, considering they are next in line to retire after the baby boomers.
Financial experts say it’s not too late for Gen Xers to take action. They recommend creating a financial plan, saving early and often, and delaying Social Security benefits until age 70 if possible. Leveraging other assets like fixed annuities and investments can also help supplement income.
Contributing to a 401(k) account is crucial. “The best time to start funding your 401(k) was yesterday, but since that is not an option, do it immediately,” said Herman Thompson Jr., a CFP. Experts also suggest shifting focus from catching up to creating resilience in your financial plan.
This involves understanding fixed-income streams, minimizing debt, and ensuring assets are liquid and accessible.
Gen X financial resilience strategies
Rethinking the timing and structure of retirement is another option.
Many Gen Xers are exploring phased retirement, blending part-time work with leisure. This approach extends earning potential while allowing savings to continue compounding. Prioritizing cash flow over net worth is key.
Instead of chasing a specific retirement savings target, create sustainable cash flow. This empowers decision-making that feels actionable, not overwhelming. Investing in health as a financial strategy is also important.
Allocating resources to preventive care and lifestyle adjustments now can reduce healthcare expenses later. Pursuing nontraditional income strategies like renting out unused property or monetizing skills through gig work can provide immediate financial relief without requiring dramatic lifestyle changes. Being prepared isn’t about achieving perfection but about building a sustainable, flexible plan that provides peace of mind.
“It’s not too late to take control — and that’s a powerful realization for anyone on the cusp of retirement,” said one expert.
