Gen X seeks less financial advice even as retirement worries rise

Many Gen Xers are moving closer toward retirement with a lot of uncertainty about the state of their finances. This is according to the latest findings from Northwestern Mutual’s 2025 Planning & Progress Study,  which reveals that more than half of Gen Xers – people born between 1965 and 1980 – think they won’t be financially prepared for retirement.

“Few Gen Xers believe they will be financially prepared for retirement due to the significant disruption and change they have experienced, making comprehensive retirement planning both challenging and crucial,” explained Matthew Nichols, partner and private wealth advisor with Freedom Wealth Advisors, a Northwestern Mutual Private Client Group. “Economic volatility, caregiving responsibilities, reduced access to traditional pensions, and the higher frequency of job and career changes for Gen Xers due to rapid technological advances have created uncertainty about future financial security. This uncertainty, coupled with the unknown stability of Social Security for their retirement, leaves many Gen Xers feeling unprepared for retirement.”

Fear of outliving their savings

In addition to so few Gen Xers believing they won’t be financially prepared for retirement, more than half think it’s likely they’ll outlive their savings compared to 40% of Boomers+, according to the research. It’s not surprising, therefore, that Gen Xers express the most concern about being able to afford retirement. They’re also the least likely among all generations to say they expect to leave an inheritance.

“The nature of support is changing,” said Jeff Sippel, chief strategy officer at Northwestern Mutual. “Parents are living longer and that’s compelling Gen X to provide more extended financial assistance than Boomers did with their parents. Plus, Gen X’s children need more support with the cost of college, childcare, health care, and housing, all going up. Gen X is feeling the pinch, and we see it in the data.”

Less clear on several issues about their financial lives

The research also finds that Gen Xers have significantly less clarity than Boomers+ on a range of issues in their financial lives. These include how inflation and taxes could impact retirement, strategies to address healthcare and long-term care needs and more.

Gen Xers face unique financial challenges compared to Boomers, contributing to their uncertainty on financial issues, explained Nichols. “They often juggle caregiving for both aging parents and adult children, which strains their finances. With less access to pensions, they must rely more on personal savings for retirement, amid concerns of potential future changes to Social Security,” he added

And half of Gen Xers said they’ve had a financial blind spot when it comes to managing their finances. They feel they’ve placed too much emphasis on building wealth without dedicating enough to protecting their assets. The numbers for Boomers+ who said the same are significantly lower – 35%. “Growth without protection can leave people vulnerable,” said Sippel. “Especially as you get older, safeguarding what you’ve built is just as critical as continuing to build. A holistic plan should account for both.”

 Financial uncertainty keeping Gen Xers up at night

With all of these issues that Gen X faces, it is not surprising that more than a third of them said that uncertainty about finances is keeping them up at night at least once a month. For Boomers+, it’s only14%.

An issue that is weighing on the minds of roughly half of Gen Xers is whether Social Security will be there for them when they qualify for it. That question is neck-and-neck with, “How much will I need to retire comfortably?” among the most important retirement issues for Gen Xers. And it is different from how Millennials and Boomers+ are thinking about Social Security.

But Gen Xers are not seeking help

In spite of these concerns, Gen Xers are less likely than Boomers+ to have sought professional help for their finances. In fact, the survey found that only 33% of Gen Xers currently work with an advisor. This is 10 percentage points lower than the 43% of Boomers+ who do the same.

So why are Gen Xers less likely than Boomers+ to seek professional help? Many Gen Xers mistakenly believe that they need to have half a million dollars already saved for an expert to help them plan – and that myth is holding them back, explained Nichols. “The truth is that many advisors across our industry will help people, young and older, affluent or starting out, to plan for financial security,” he added. “As advisors, we exist to free people from the financial anxiety they feel – and get them closer to their goals in life.”

Helping GenX gain clarity

And what are some of the steps that advisors can take to help Gen Xers become clear on what they need to do as they move toward retirement and build a plan to get them there? “Financial advice begins with trust,” said Nichols. It’s important for advisors to take the time to build a relationship with their clients – asking better questions to get to know them as people.  As they do so, he said, “it’s important to leave our judgements at the door. Advisors need to meet people where they are, identify their blind spots, and help them build a plan that’s custom-built just for them. All Americans are so unique; each one of us has our own worries, goals and dreams. That’s why everyone deserves a comprehensive plan that has been crafted to meet each client’s life goals.”

The 2025 Planning & Progress Study was conducted by The Harris Poll on behalf of Northwestern Mutual among 4,626 U.S. adults aged 18 or older. The survey was conducted online between January 2 and January 19, 2025.

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