Gen X: We Need to Talk About Your Retirement
Juggling kids, aging parents and work? No wonder you don't want to talk about your own retirement. But there are four key areas you should be discussing now.


Raised on Prince blasting from their Walkmans and shows like The Brady Bunch, Generation X experienced everything from the disco era to the grunge explosion. Sandwiched between Baby Boomers and Millennials, they are often the forgotten generation, but many Gen Xers are approaching, or have already passed, a key life milestone: turning age 59½.
Reaching this age signals when you can begin withdrawing from your retirement accounts penalty-free. Many Gen Xers hope to retire at 60, which means their golden years are right around the corner. Unfortunately, many are woefully underprepared, and with such a short on-ramp to retirement, Gen Xers might have a hard time recovering from financial mistakes.
In order to afford their dream retirement, it’s important for Gen Xers to think proactively about their golden years and get ahead of any potential pitfalls.

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Why is Gen X behind?
A solid retirement plan used to be built on a solid three-legged stool: pension plans, personal savings and Social Security benefits. Many Baby Boomers and Gen Xers have experienced the loss of pension plans, leaving them with only two legs to stand on when planning for retirement. Between 1975 and 2019, the number of employees with pension plans decreased by more than 50%.
Many Gen Xers fear losing another leg of the retirement stool: Social Security. Unless action is taken, the Social Security trust fund is expected to be able to pay full benefits only through 2033. While Social Security won’t go away at that time, monthly benefits could be reduced, or lawmakers could adjust the age requirements to access Social Security benefits. Regardless of what happens, the ambiguity of Social Security is a major source of stress.
Also known as the sandwich generation, many Gen Xers are overwhelmed by the time, money and energy it takes to care for their children and aging parents. They are also often in the highest earning years of their lives, which comes with more responsibilities. Preparing for retirement understandably gets pushed to the back burner as they balance caring for the needs of loved ones and pursuing their own careers. But someday soon, Gen X will look up, and retirement will be right around the corner.
How to get ready for retirement
While it’s never too late to start planning for retirement, there’s no better day to begin than today. The first step Gen X should take is to meet with a financial adviser who can help develop a customized plan and point out any potential pitfalls. Doing this before you enter retirement can make a big difference in your probability of success, because most problems are easier to fix before you experience them. It’s easier to patch a boat before you get it in the water.
Advisers have access to tools and products that everyday investors can’t get. They also have world-class software that allows them to run scenarios and estimate your probability of success. To design a comprehensive retirement plan that fits your unique goals, there are four key areas you should discuss with your adviser:
1. Create an income plan
With pension plans largely gone and Social Security benefits at risk of being reduced, Gen Xers must focus on creating alternative sources of income in retirement. An income plan is designed to pay for your retirement needs and should ideally include income sources not subject to volatility and designed to last as long as you do.
For example, an income plan could consist of monthly annuity payments, rent from a real estate property and withdrawals from your 401(k).
Find an adviser who offers a wide variety of income sources to help meet your specific goals.
2. Maximize your retirement contributions
It's important to save as much as you can toward your retirement while you are still working. Save at least enough money to get any company match offered through your employer-sponsored 401(k) plan. Thanks to catch-up contributions, Gen Xers age 50 or older can put aside even more money for retirement. In 2024, you can contribute an extra $7,500 to your 401(k) and an additional $1,000 to your IRAs.
If you have any debt, it’s important to prioritize paying that off before you retire. This will help lower your monthly expenses and stretch your savings even further.
3. Adjust your investment strategy
Within 10 years of retirement, your investment strategy should start to look different from when you were in your 20s and 30s. As you get closer to when you’ll need to use your money, your strategy should focus on minimizing unnecessary risk, because you’ll have less time to recover from major market losses.
Pay attention to how you’re invested and what you’re invested in. Are you taking on too much risk? Do you have safeguards in place? These are the types of questions a financial adviser can help you answer.
4. Plan for your health care needs
Many Gen Xers hope to retire younger than previous generations. If you retire before age 65, when Medicare becomes accessible, you’ll need to have a plan for medical insurance. Health care costs are a major expense for retirees: One in three fear going broke over medical costs.
I’ve worked with clients who have continued working part time in early retirement so they can keep their health insurance.
In other cases, it might make sense for one spouse to retire while the other continues to work until Medicare becomes available. The important thing is to create a proactive plan so you aren’t caught off guard paying for your medical needs out-of-pocket.
At the end of the day, there is no one-size-fits-all solution to getting ready for retirement, but thinking proactively about your golden years will help you avoid unnecessary mistakes. Many of the Baby Boomers I work with tell me they wish they would’ve started planning for retirement earlier. Gen X, learn from their example and start planning today!
Related Content
- Four Things Gen Xers Can Do Now to Reach Retirement Goals
- Gen X Should Prepare Now for the Great Wealth Transfer
- Gen X Parents: Saving for Retirement and College?
- Don't Wait: Make Your Year-End Money Moves Now
- Gen Xers Ask: ‘Can I Afford to Retire?’
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As the founder and CEO of Momentum Wealth, Nico Pesci is passionate about creating efficient retirement plans and helping clients adapt to volatile economic environments. After watching his parents struggle to keep their retirement savings during the 2008 financial crisis, Nico founded Momentum Wealth to help people like his parents build the confidence they need to enjoy the retirement they deserve.
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