Baby boomers may just be the last generation to have had a smooth and financially secure retirement. For their children, most of whom are Generation X, retirement will not be as easy as it was for their parents.
Cost of living, healthcare, and housing prices are rising faster than wages—eroding savings and increasing reliance on credit, according to Natalia Brown, chief consumer affairs and creditor relations officer at National Debt Relief (NDR). Many Gen Xers are finding they need to work longer, delay retirement, or tap into their limited savings just to stay afloat.
Here are some of the reasons why Gen X can’t retire like boomers—and what they can do about it.
### Gen Xers Have Less Saved
Many Gen Xers are entering their 50s and early 60s with both debt and significant anxiety about their finances, Brown said. She cited an NDR survey that found “most Gen Xers in debt lack confidence in their ability to retire as planned and have deep concern that Social Security alone won’t be enough to sustain them.”
### Gen Xers Survived More Economic Disruptions
“Gen Xers have been through a lot” at the economic level, according to Jay Zigmont, CFP, founder of Childfree Trust. “Job disruptions disrupt retirement savings. Crashes add to the uncertainty and may result in Gen Xers having less money saved and taking less risk when investing,” he said.
Unlike boomers, Gen Xers have faced major economic disruptions during their critical wealth-building years, such as the dot-com crash, the 2008 housing crisis, and the COVID-19 pandemic. Add to this “stagnant wages and rising costs,” Brown said, it’s no surprise many Gen Xers now face financial strain.
These economic hardships have also left many Gen Xers feeling financially cautious, if not discouraged. However, Brown said that financial confidence can be rebuilt “with a plan, support and the belief that it’s not too late.”
### Gen Xers Are a Sandwich Generation
Gen Xers are also a key “sandwich generation,” with many financially supporting both their children and their aging parents—sometimes while still managing their own debt.
“This juggling act makes it extremely hard to prioritize retirement savings,” Brown said. She pointed out that “these overlapping responsibilities are draining both time and money, which is why so many Gen Xers feel behind.”
Zigmont added that caring for parents is so common that “we now include it as a core step in our clients’ financial plans.”
### Boomers Had Pensions; Most Gen Xers Don’t
Boomers reaped the benefits of “the original design for retirement planning,” Zigmont explained. This design focused on four parts: pension, retirement savings, Social Security, and building equity in one’s primary residence.
Unfortunately, “pensions are now rare, except for people working in public service,” he said. In fact, he explained, 401(k) plans were introduced to help grow retirement savings, but most employers saw them as a cheaper alternative to pensions and stopped offering the latter.
“Gen Xers are the first generation to retire without pensions. It is often called the ‘401(k) experiment’ as we don’t know if it will work or if people truly saved enough,” Zigmont said.
What is known is that Social Security is not enough to retire on alone, making 401(k) plans more crucial than ever.
### Many Gen Xers Live Paycheck to Paycheck
Simply put, the higher cost of living is impacting everybody, but Gen Xers are closer to retirement than younger peers, which adds stress.
Zigmont also pointed to rising housing costs and overall inflation. “If you are living paycheck to paycheck, you don’t have the money to retire at all,” he said.
### Debt Is Holding Gen X Back
Zigmont emphasized a necessary step for Gen Xers who feel behind on retirement: get out of debt first.
“Many Gen Xers will have to delay retirement to make ends meet,” he said.
### What Gen Xers Can Do To Catch Up
Despite this challenging outlook, it’s never too late to take meaningful action.
“Gen Xers can start by maximizing catch-up contributions to their 401(k) or IRA, especially since those over 50 are eligible to contribute more,” Brown said. She urged anyone alarmed about their retirement to start with a plan, get support, and focus on what you can control.
While delaying retirement may not be ideal, even a few extra working years can make a significant difference—not just in savings, but also in reducing the number of retirement years that need funding.
Zigmont recommended the *Catching Up to FI* podcast for those who feel behind to realize they’re in a very common situation. “There are millions of people just like you that are trying to catch up. It is not too late,” he said.
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*This article originally appeared on GOBankingRates.com: [Gen X Is Hoping To Retire Like Boomers: Here’s Why They Can’t](https://www.gobankingrates.com/retirement/gen-x-retirement/). The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.*
https://www.nasdaq.com/articles/gen-x-hoping-retire-boomers-heres-why-they-cant