Generation X—those born roughly between 1965 and 1980—was once known as the “forgotten middle child” of American demographics. Now, they’re closing in on retirement, and many are facing a cold reality: they may not be ready.
While Gen X has endured recessions, job market shifts, and the decline of pensions, some of the biggest threats to their financial future are decisions they’re making themselves. Here’s how Gen X might be sabotaging their own retirement without even realizing it.
Delaying Saving for Too Long
Many Gen Xers waited well into their 30s or 40s to get serious about retirement savings. With student loans, mortgage payments, and child-rearing expenses front and center, putting money into a 401(k) or IRA often took a backseat. Unfortunately, time is one of the most powerful tools in retirement planning. The later you start, the more aggressively you have to save—and fewer years means less compound growth.
Relying Too Much on Home Equity
A house isn’t a retirement plan. While many Gen Xers have counted on their home to serve as a financial cushion in retirement, that strategy has serious risks. Housing markets fluctuate, selling your home can come with high costs, and downsizing doesn’t always produce the windfall people imagine. If home equity is your Plan A, you might need a Plan B.
Underestimating Healthcare Costs
Gen Xers often forget just how expensive retirement healthcare can be. Medicare doesn’t cover everything, and long-term care is not cheap. Assuming that Social Security and a modest savings account will cover medical bills is a dangerous gamble.
Many Gen Xers aren’t budgeting enough for out-of-pocket costs, premiums, or the possibility of needing care for years.
Prioritizing Kids’ Expenses Over Their Own Future
It’s natural to want to help your children with college tuition, weddings, or first homes. But many Gen X parents are sacrificing their retirement security to support their kids.
Financially assisting adult children can delay retirement contributions or drain existing savings. You can borrow for college—you can’t borrow for retirement.
Living Without a Financial Plan
Flying blind is never a good strategy, yet a surprising number of Gen Xers don’t have a detailed retirement plan. Many haven’t met with a financial advisor or created even a basic projection of what they’ll need. Without knowing your target, you can’t make meaningful progress. Guessing is not a plan—it’s a risk.
Chasing High-Risk Investments Too Late
In an effort to catch up, some Gen Xers are throwing money into crypto, speculative stocks, or trendy “side hustles” with little understanding or strategy. While risk has a place in long-term investing, panic-driven choices late in the game can lead to major losses. Getting aggressive after age 50 might hurt more than it helps.
Not Taking Advantage of Catch-Up Contributions
One of the biggest missed opportunities for Gen X is failing to use catch-up contributions allowed after age 50. If you’re behind, these extra savings windows in retirement accounts are critical. Ignoring them could mean losing out on thousands of dollars in tax-advantaged growth.
Depending Too Much on Social Security
Many Gen Xers assume Social Security will be there for them at the same level it was for Boomers—but that’s far from guaranteed. Even if the program remains, full benefits may not be available until later, and they likely won’t be enough to cover all expenses. Relying on Social Security alone is a risky and unrealistic plan.
Ignoring Inflation
Some Gen X savers look at their retirement balances and feel secure—without adjusting for inflation. What seems like a comfortable nest egg now may not go far in 15 or 20 years. If your savings aren’t growing faster than inflation, you’re slowly losing purchasing power—and risking a shortfall just when you need income the most.
Holding On to Debt Too Long
From credit cards to student loans to home equity lines, Gen X is carrying more debt than previous generations did at their age. High-interest debt drains the ability to save, and entering retirement with monthly payments can turn a fixed income into a stressful juggling act. The longer debt lingers, the harder it is to retire comfortably.
