Why So Many Gen Xers Feel Financially Stuck — And What You Can Do About It
From market crashes to rising costs, Gen X has faced unique financial challenges that are reshaping retirement plans.
Many Gen Xers feel financially behind and are rethinking their retirement plans. The generation entered the workforce during a major shift from traditional pensions to self-funded retirement accounts, placing more responsibility for retirement savings on workers.
They also faced a series of economic setbacks at key points in their lives, including the dot-com crash early in their careers and the housing market collapse during their prime homebuying years.
Today, many Gen Xers are balancing the rising cost of living, retirement savings concerns and the financial demands of supporting both children and aging parents. As a result, a growing number are looking for ways to catch up and strengthen their financial future.
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Why many Gen Xers still feel financially behind
Gen X, now between the ages of 46 and 61, hasn’t had an easy go of things financially, and many factors are prompting the generation to feel like they’re financially behind. Today, Gen X is grappling with inflation, higher living costs and the financial demands of supporting both children and aging parents.
Those pressures are taking a toll on retirement savings. According to the Schroders U.S. Retirement Survey, 24% of Gen Xers with a workplace retirement plan, such as a 401(k), have borrowed from it to cover unexpected personal or family expenses, pay down debt or manage rising costs.
Retirement anxiety is widespread. The survey found that just 16% of Gen Xers believe they have saved enough for retirement, while more than half worry they could outlive their savings.
Why financial experts say Gen X still has time to adapt
While many Gen Xers are concerned about their retirement readiness, experts say there's still time to strengthen their financial outlook. Because Gen X is currently in its peak earning years, many individuals have a greater ability to increase retirement contributions and accelerate savings.
The IRS allows individuals who are age 50 or older by the end of the calendar year to make catch-up contributions to retirement accounts such as 401(k)s and 403(b)s. In 2026, eligible workers can contribute an additional $8,000, providing an opportunity to boost retirement savings more quickly.
These peak earning years can also be an ideal time to tackle high-interest debt, such as credit card balances. Once that debt is paid down, the money previously directed toward interest payments can be redirected into retirement accounts, high-yield savings accounts or other long-term financial goals.
How Gen X is adjusting retirement expectations
Feeling financially behind has prompted many Gen Xers to rethink their retirement plans. A 2026 Employee Financial Wellness Survey by PwC found that 47% of Gen X employees expect to delay retirement because they haven't saved enough, while 51% believe they may need to tap their retirement savings to cover non-retirement expenses.
To improve their financial outlook, some Gen Xers are turning to side hustles, consulting work and second careers to generate additional income and boost their retirement savings.
Others are looking for ways to reduce expenses as retirement approaches. Downsizing to a smaller home can lower monthly housing costs, and for homeowners who have built substantial home equity, it may also unlock additional cash that can be redirected toward savings and retirement goals.
Small financial moves can still have a big impact
Even small financial changes can make a meaningful difference in retirement readiness.
Automate retirement savings increases. Many 401(k) plans allow participants to automatically increase their contribution rate each year. Raising contributions by just 1% annually can significantly boost retirement savings over time, especially since many Gen Xers are in their peak earning years.
Review spending leaks. Conduct a budget audit to evaluate your income, expenses and financial goals. Reviewing recurring bills may reveal subscriptions, memberships or other expenses that no longer provide value.
Once you've identified areas of unnecessary spending, look for opportunities to lower monthly costs. Compare home and auto insurance quotes to ensure you're getting competitive rates, and contact your credit card issuer to ask about lowering the interest rate on an outstanding balance. Small savings across multiple expenses can add up over time.
Reassess your investment strategy. As retirement approaches, it's important to review whether your investment allocations still align with your goals, timeline and risk tolerance. Consider how soon you'll need to access your savings and whether your portfolio reflects that timeline.
A financial adviser can help evaluate your portfolio and identify opportunities to strengthen your retirement plan. Yet according to the Schroders survey, only 26% of Gen Xers work with a financial adviser, compared with 53% of Baby Boomers and 31% of Millennials. For those who don't already have professional guidance, working with a financial adviser may be worth considering.
Use the tool below, powered by Bankrate, to explore some of today's top financial planning offers:
Gen X may feel overlooked — but many are still rebuilding
Gen X has weathered decades of economic disruption, and many individuals are still working to strengthen their finances and prepare for retirement. While some may feel behind, focusing on steady progress rather than achieving a "perfect" retirement target can make the process feel more manageable.
The generation's experience navigating financial challenges has also built resilience. That adaptability can be a valuable asset as Gen X continues to adjust spending, increase savings and make strategic decisions to improve long-term financial security.
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