Gen X vs Boomers: Why the Rules of Retirement Have Changed

Father and adult son look at a phone. — (Image credit: Getty Images)

Nobody wants to hear they’re becoming like their parents, but as we age, it's often inevitable. It’s hard to escape it when their morals, values and idiosyncrasies have been etched into our brains.

While Generation X may be adopting some of the habits and personality traits of their parents' generation, they aren't following their approach to retirement saving, planning, and investing. When it comes to baby boomers and Gen Xers, their approaches couldn’t be more different.

Baby boomers, born between 1946 and 1964 (according to Pew Research), number 69 million strong. Pew places Generation X, or Gen X, as those born from 1965 to 1980. There are 65 million Gen Xers, many of whom are turning 60 this year.

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Are Gen Xers at a disadvantage?

It makes sense that Gen Xers and baby boomers would approach retirement savings differently.

Many baby boomers had access to pensions and a strong job market. They didn’t have to worry about where their income in retirement would come from.

Gen Xers weren’t so lucky. Pensions shifted to 401(k)s, student debt became a thing and more volatile economic times led to less job stability.

Even today, Gen X has it rougher than their predecessors. Many are part of the sandwich generation, helping their parents and children at the same time, and finding it hard to save for retirement.

“From an investing perspective, Gen Xers were given the short end of the stick,” says Sam Nofzinger, general manager of brokerage at Public.com, an online investing app.

“Starting in the 80s and 90s, right when this cohort was getting into the workforce, a lot of companies were moving away from pension plans toward 401(k)s, putting the onus of saving on the individual as opposed to the company,” Nofzinger says.

In the early days of 401(k) plans, there wasn't much outreach to employees, leading to low participation rates. While some Gen Xers have caught up, many aren’t as confident as baby boomers that they will live comfortably in retirement.

BlackRock’s 2026 Read on Retirement survey highlighted that. Among the generations, Gen X was the least likely to feel confident about retirement, with 60% feeling like they were on track.

Gen X would rather plan for retirement without an adviser

BlackRock also found Gen X was less likely to use financial advisers for retirement planning, preferring to do it alone. Gen Xers are also more comfortable with technology than their older counterparts, which could explain why they aren’t seeking help from financial advisers like the baby boomers.

“Gen Xers are the first generation to really embrace E*Trade (the online trading platform). When robo advisers came out about 10 years ago, they were the early adopters compared to baby boomers,” says Ludwig.

That DIY mentality might change as Gen X gets older and has to come up with strategies to draw down savings in retirement. “Saving for retirement is like arithmetic, but spending retirement income is more like calculus,” says Ludwig.

When it comes to Social Security as a retirement tool, a large majority of baby boomers expect it to be a big source of their retirement cash flow and to last their lifetime. That's even though the Social Security trust fund is projected to face a shortfall by 2033 and start paying reduced benefits, barring government intervention.

“Generation Xers are less optimistic about whether they will receive it (Social Security), but I think that’s a good thing,” says Ludwig. "It's actually driving them to save more on their own.”

Gen Xers take a more conservative approach to retirement

Whoever said you get more conservative as you get older hasn’t been hanging out with baby boomers. When it comes to investing and spending, it's the Gen Xers who are being more cautious and conservative, even if they take a more self-directed approach to retirement investing and saving.

“They are a more conservative cohort, they have much higher cash balances. They understand, as they look to retirement, that on one hand they might be taking care of their parents and on the other hand, they have to take care of their kids,” says Nofzinger.

Boomers, on the other hand, are not conservative, at least when it comes to spending, says Nofzinger. That’s particularly true of the ones who have been invested in the past 10 to 15 years. “Everything worked out for them,” he says, noting many financial projections turned out to be wrong.

Instead of a 6% return on their investments over the long term, they've seen 9% to 10% returns, which has been a huge boost to their portfolios. Additionally, in many places around the country, the value of their homes has appreciated more than expected. “Boomers are riding high,” says Nofzinger.

They both want a phased retirement, but for different reasons

Here's one both generations can sort of agree on: they both like the idea of a phased retirement instead of an abrupt end to their careers. Their reasons, however, are different.

Many baby boomers aren't motivated by a lack of retirement savings to slowly transition into retirement. It's more about maintaining work relationships, income for healthcare costs, and a desire to slow down but not stop working completely.

For Gen X, a phased retirement is a means to an end. They need the income to support their sandwich generation responsibilities, and because many haven't saved enough for retirement.

The paths will eventually merge

Gen Xers and baby boomers differ in their approach to saving and planning for retirement, but they do agree on two things: they want a happy retirement and a healthy one.

It's just how they get there is where they diverge.

Donna Fuscaldo is the retirement writer at Kiplinger.com. A writer and editor focused on retirement savings, planning, travel and lifestyle, Donna brings over two decades of experience working with publications including AARP, The Wall Street Journal, Forbes, Investopedia and HerMoney.