Gen X faces ‘pension envy’ as they head into retirement

Image shows a happy man with a pension and an unhappy man with a 401(k). — Twenty-eight percent of first-wave Gen Xers [ages 55–60] said they are extremely or very concerned about having enough income to last their lifetime. (AI-generated image)

By Brooke Lacey

Gen X members are approaching retirement at a time, in many instances, when much of the responsibility for creating retirement income falls on the individual.

For many of their parents, retirement planning was built around a combination of Social Security, personal savings and a pension that provided regular income.

Unlike that generation, many Gen Xers [roughly ages 46 to 60] generally don’t have pensions to rely on, so they need to figure out how to turn the savings they’ve accumulated into income that can last for the rest of their lives.

“At the same time, many are still supporting children, helping aging parents or thinking about both. That can make it harder to know exactly what their own retirement will look like,” said Jason Bickler, co-head of Individual Markets at Global Atlantic.

A recent Global Atlantic 2026 Retirement Outlook Survey found that 56% of Gen Xers surveyed without a pension experience ‘pension envy,’ and 48% anticipate they may need to return to work after retiring.

In addition, the study revealed that 28% of first-wave Gen Xers [ages 55–60] said they are extremely or very concerned about having enough income to last their lifetime – double the rate of baby boomers aged 61-75.

“Gen X is really a transition generation when it comes to retirement," Bickler noted. "Many watched their parents retire with pensions that provided a predictable income for life, while their own retirement savings are much more likely to be tied to 401(k)s and other individual accounts."

He added that this means the challenge for Gen X isn’t just accumulating enough money, but how to turn those savings into reliable income and make that income last through a retirement that could span decades.

Big inheritance on the way

According to a recent study by Cerulli Associates, Gen Xers are projected to inherit $1.4 trillion every year, on average. An inheritance can certainly strengthen a retirement plan, Bickler agreed, but it shouldn’t be the foundation of one.

“People are living longer, and their parents may need their assets for many more years than expected, particularly as healthcare and long-term care expenses increase,” he said.

There’s also uncertainty around both the timing and size of an inheritance.

”A more resilient approach is to build a retirement plan around the assets you control today and view an eventual inheritance as an opportunity to enhance that plan rather than something the plan depends on,” Bickler said.

Gen Xers need to think about how long they may live, what healthcare could cost, what markets might do and how to replace a paycheck once they stop working, he added.

“The question isn’t simply, ‘Have I saved enough?’ It’s also, ‘How do I make what I’ve saved last?’” he said.

“That changes the conversation. Accumulating assets is still incredibly important, but as retirement gets closer, people also need to think about what those assets are ultimately for: generating income, covering expenses and supporting the life they want throughout retirement,” Bickler said.

Annuities may be a good solution

Bickler said that allocating some retirement assets into an annuity may be a good option.

“Annuities can help create a source of guaranteed income that a person cannot outlive, which can complement Social Security and other retirement assets,” he said.

“One way to think about it is that not every dollar in a retirement portfolio has to do the same job. Some assets can remain invested for growth and flexibility, while an annuity can help provide predictable income to cover a portion of essential expenses."

Bickler noted that since every retirement strategy is different, Gen Xers should reach out to financial professionals who know their clients and their individual needs best.

“They can help clients think through how guaranteed income can complement their other retirement assets and build a strategy that reflects their goals, needs and circumstances,” he said.

“For financial professionals, there’s an opportunity to help clients focus on the things they can control and build flexibility around the things they can’t,” Bicker said. “For Gen X in particular, retirement planning is increasingly about turning decades of saving into a plan for decades of living.”