How do you feel about retirement; photo by Jo Panuwat D

Half of GenX Feel “Significantly Behind” in Retirement Savings – Experts Share Ways to Catch Up

ByDawn Allcot

If GenX, those born between 1965 and 1980, has one defining characteristic, it’s resilience. Many of us grew up as “latchkey kids,” raised on Hot Pockets, hose water, and afterschool specials.

While determination and resilience are typically positive personality traits, it can also lead to a lack of planning. “We’re more of a seat-of-the-pants group,” said Peter Krull of Earth Equity Advisors and author of The Sustainable Investor. “I think that translates to how GenX manages their finances.”

Read: Inspiring stories from GenX and Boomers

Discover: More helpful personal finance tips

As the youngest of us reach our late 40s and the oldest are just a few years from retirement, that lack of planning, coupled with a lack of clear financial advice or direction from our parents earlier in life, is catching up.  A new Bankrate survey revealed that 47% of GenX feel “significantly behind” where they should be when it comes to saving for retirement. Another 22% feel “slightly behind.” Only 17% feel they are “right on track,” and a scant 3% feel significantly ahead of the game.

Boomers still in the workforce face similar fears. Forty percent of working Boomers feel “significantly behind” on retirement savings and 19% feel slightly behind.

To contrast, only 22% of GenZ feel “significantly behind.” 

As we work to teach our GenZ and Gen Alpha kids the basics of better money management, what can GenX and Boomers do to prepare for retirement?

“We are the MacGyver generation,” Krull said, referring to the 1980s television show starring Richard Dean Anderson, where the titular character played a secret agent known for his resourcefulness. “We just need some wire, duct tape, and a prayer,” Krull said.

In the case of retirement income, the tools are a 401(k) or other investments, home equity, and a trusted financial advisor.

Take a Realistic Assessment of Your Finances

You may feel you’re significantly behind on retirement savings. But without a thorough analysis of how much you’ll need, you won’t know for sure.

“The initial action GenXers may consider taking is to construct an intentional, actionable plan that can help them reach their retirement goals,” said Broad Financial’s Brian Finkelstein. “This typically begins by developing an in-depth understanding of how much they’ll need for retirement.”

He suggested following the 25x rule. “This involves taking the total amount of your annual retirement spending and multiplying that number by 25. Its result will generally provide a basis for what they need,” he said.

As you perform this self-assessment, don’t be afraid to look on the bright side of things.

“We’ve definitely been good earners because we generally have an excellent work ethic,” Krull said. “We’ve accumulated assets in vehicles like 401(k)s and our homes.”

These assets can work for you in retirement, even if your Social Security benefits fall short.

Create a Budget

Krull and Finkelstein both suggested creating a budget. This allows you to get your spending under control now and find ways to free up cash flow that can go toward retirement savings.

“Also consider redirecting windfalls like tax refunds or work bonuses to your retirement account to add more funds for potential compounding,” Finkelstein said.

Attack High-Interest Debt

Tackling debt now will reduce your cost-of-living in retirement. But be smart about it, experts advised. “Don’t get rid of that 2.6% mortgage you refinanced back in 2020, but avoid new, higher-interest debt,” Krull said.

Make Savings Automatic

You’ve probably heard this advice before, but if you aren’t doing it already, it’s time to listen: Automate your savings.

“One of the biggest behavioral biases that humans succumb to is the bias toward immediate gratification over delayed gratification,” said Robert R. Johnson, PhD, CFA, CAIA, Professor of Finance, Heider College of Business, Creighton University. “One must make saving money a habit. And habits develop over time.”

He suggested depositing money from your paycheck directly into a low-cost stock index fund. “This strategy means you will be putting money into the market whether stocks are rising, falling or treading water. You will practice dollar cost averaging and build significant wealth over the long run,” he said.

Don’t Panic

If you’re feeling frustrated about your retirement savings, it is often tempting to take one of two paths: ignore the situation or frantically try to boost your investment earnings with speculative investments.

“Ironically, in investments, you can get rich with average performance,” Johnson explained. “If one can avoid making big mistakes — and that happens by not taking bets on individual speculative stocks — one can build true wealth in the long run.”

Take Advantage of Catchup Contributions

If you’re over 50, you have opportunities to take advantage of catch-up contributions for your retirement accounts. In 2026, individuals can contribute up to $24,500 to their 401(k) retirement plans, according to the IRS website.

Depending on your tax bracket, funding a Roth IRA and using the catch-up provision can help you save even more. “It’s considered best practice to maximize your annual contribution limits, by depositing funds up to the allotted amount,” Finkelstein said.

Find a Financial Advisor

If you’re struggling and unsure of your best investment steps, seek help to find the right path. “Work with a financial advisor to help create some accountability,” Krull said, noting that GenX is determined and will do what it takes, when facing the future, to ensure they can provide for themselves and their family.

“GenX can accomplish what they set their minds to,” he said. “It may take them longer to save up for a comfortable retirement, but they will do it despite the odds — maybe even out of spite because someone told them they couldn’t do it.”

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Dawn Allcot has more than three decades of experience as a magazine editor, trade journalist, and content marketing writer specializing in finance, tech, travel, marketing and insurance. She’s thrilled to contribute to Nifty50+, where she covers the topics that keep GenX up at night, from budgeting and retirement planning to multigenerational travel and finding peace in the chaos of midlife. Dawn’s work is widely published on top personal finance and other sites including GOBankingRates, CardCritics, CNET, The Street, and The Daily Navigator. It’s often syndicated at MSN, Yahoo! Finance, Nasdaq and other top sites. Find Dawn on LinkedIn at https://www.linkedin.com/in/dawnallcot/.

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