Gen X Falling Behind on Retirement Planning
As Gen Xers steadily move into retirement, many realize they’re not as financially prepared as they initially thought.
The latest findings from the Northwestern Mutual 2025 Planning & Progress Study found that 54% of Gen Xers believe they won’t be financially ready for retirement. With just a few years left until the oldest members of the generation reach retirement age, many are left uncertain about the state of their finances and retirement.
This age group will also need to save more to retire comfortably, Northwestern Mutual predicts. Gen Xers say they’ll need $1.57 million to retire happily, which is about $310,000 more than the national average initially reported by the organization.
When asked how much they have saved as a multiple of their annual income, 17% said they’ve allocated 2x of their salary to retirement savings.
“Many Gen X’ers are juggling responsibilities on both ends, supporting aging parents while still helping their children,” said Jeff Sippel, chief strategy officer at Northwestern Mutual. “So, they’re feeling the pressure of being part of the sandwich generation. They’re also the first generation to truly feel the impact of the move from defined benefit plans to defined contribution plans. All of this puts more of the burden of financial planning on their shoulders. That’s where a comprehensive financial plan custom-built by a trusted advisor can make a real impact. It can help Gen X’ers get clarity on what they need as they head toward their retirement years and put a realistic gameplan in place to get there.”
Unsurprisingly, over half (57%) of Gen Zers surveyed say they’re likelier to outlive savings compared to 40% of Baby Boomers, yet 26% do not expect to leave an inheritance behind.
A retirement disconnect
Northwestern Mutual’s study shows Gen Xers are significantly unclear on several issues impacting their finances, including how inflation, drops in the stock market, and taxes could impact their retirement. Fifty-three percent of Gen Xers say they understand how inflation could sway retirement and have factored it into their financial plans, compared to 66% of Boomers.
Similarly, 49% of Gen Xers are clear with how taxes impact their retirement, compared to 62% of Boomers. When asked if they knew how drops in the stock market could have an effect on retirement, 51% of Gen Xers and 60% of Boomers said they understood.
Gen Xers consistently knew less than Boomers on how they would address healthcare costs in retirement, whether they would have enough saved to leave an inheritance, and and even on how much money they would need to retire comfortably.
Professional guidance needed
Struggling to stay afloat with responsibilities that include caregiving and homeownership, the “Sandwich Generation” are less likely to have the time to seek professional health.
Thirty-three percent of Gen Xers currently work with an advisor, at 10% lower than 43% of Baby Boomers.
“A financial advisor can bring structure and strategy to what otherwise might feel overwhelming,” said Sippel. “For Gen X, who are navigating a complex mix of responsibilities and goals, that kind of support can make the difference between feeling lost and feeling empowered.”
The 2025 Planning & Progress Study was conducted by The Harris Poll on behalf of Northwestern Mutual among 4,626 U.S. adults aged 18 or older. Additional data points from the study can be found here.
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.
