Gen X unsure whether they can catch up with retirement saving

Columbus, OH -Suddenly at the doorstep of retirement, Generation X investors (aged 45-60) are at a crossroads. Despite their proximity to retirement, the prospect of exiting the workforce has largely "snuck up" on this cohort, according to a new Advisor Authority study, powered by the Nationwide Retirement Institute.

In fact, six in ten (61%) non-retired Gen Xers say they didn’t feel their retirement was an urgent priority, rather a distant milestone, until age 50 or older. Moreover, about a quarter (26%) say they won’t reach that point until age 60 or older.

This delayed awareness has created a domino effect. Many Gen Xers now feel like they're behind in their planning and are fighting to catch up with their retirement savings. After realizing retirement was nearing, 40% of Gen X investors cut discretionary spending, 34% increased their contributions to retirement accounts, 23% sought out professional financial advice and 19% shifted their investment strategy to reduce risk.

Even though they’re taking action, Gen Xers lack confidence in their ability to stretch savings through the full duration of their retirement – and financial advisors agree with that concern. A quarter (25%) of Gen X investors say they are concerned their savings won’t last more than 14 years, and more than one in ten (12%) say their savings are already dwindling. Many advisors share that unease, with 39% believing insufficient retirement income is one of the biggest obstacles for their Gen X clients’ retirement readiness.

“For Gen Xers, the clock is ticking. Retirement is no longer a distant milestone, but an event that’s right around the corner. These investors have been focused on juggling college costs for their children, caring for aging parents and managing through economic volatility over the last several years, but retirement planning can no longer wait,” said Suzanne Ricklin, vice president of Nationwide Retention and Sales. “Every year of delay means fewer options and greater risk they will miss out on a secure retirement. Making retirement a priority now by connecting with a financial advisor who can help pinpoint the right solutions for Gen Xers’ needs is essential for this generation.”

Macro pressures top of mind

Cost of living and broader macroeconomic pressures are profoundly impacting Gen Xers' retirement plans. Despite being on the threshold of retirement, many are reconsidering their timelines entirely. In fact, 16% of non-retired Gen Xers say they are planning to retire later than initially hoped. More than one in ten (12%) say they plan to work part-time in retirement, and 15% say they don't know if they'll ever be able to retire.

That uncertainty is carrying over into Gen Xers' perspective on their post-retirement lives, too. A quarter (26%) of non-retired Gen Xers believe they would be forced to return to the workforce at some point due to inadequate savings if they retired in the next 12 months. More than four in ten (43%) say they'd continue working in some capacity to supplement income out of necessity.

Swirling macroeconomic pressures over the last year have played a key role in this sentiment. While 29% say they won’t change their allocations, 50% of Gen Xers say the events of the last 12 months have made them more likely to put part of their portfolio into an annuity or other solution that provides guaranteed income.

Concerns about inflation and government benefits are accelerating at an alarming pace. More than half (56%) of non-retired Gen Xers believe inflation will increase in the next year, up from 39% six months prior. Nearly half (48%) believe Social Security and Medicare will be cut in the Federal budget process, threatening the long-term solvency of the program, up from 34% six months ago.

The impact is clear: 89% of Gen Xers believe rising living costs are making it harder to retire comfortably.

Key catalysts spur retirement action

Gen Xers are learning from their family members' retirement experiences—and it's changing how they approach their own planning. In fact, more than a third (37%) of non-retired Gen Xers say observing peers or family members struggle with retirement planning was a primary trigger for making retirement planning a priority for themselves.

In addition to familial struggles with retirement, the current economic landscape is driving retirement planning to the top of the list of priorities for Gen Xers, as 38% say economic changes or market volatility forced them to prioritize retirement planning. Moreover, advisors' recommendations carry significant weight in Gen Xers' eyes, with 28% saying a financial planning session or advice from an advisor prompted them to make retirement planning a priority.

Financial professionals recognize headwinds, offer perspective

Beyond insufficient retirement income, financial professionals have identified other key headwinds facing Gen X clients’ retirement prospects. A quarter (25%) point to insufficient emergency savings as a key retirement obstacle for Gen Xers, and a third (33%) also point to concerns around escalating healthcare and insurance expenses as one of the biggest obstacles for Gen X clients.

In response, advisors are using different, targeted approaches to help their Gen X clients compared to those used with their older clients. More than four in ten (43%) are having more frequent and flexible communication with this cohort, keeping in touch regularly to guide them through the home stretch. Nearly a third (32%) are increasing or introducing the use of annuities with their Gen X clients.

“As Gen X investors approach retirement, working with a trusted financial advisor becomes more critical than ever,” said Ricklin. “This generation faces unique challenges, and a calm, professional perspective can help cut through the noise, keep plans on track and protect the dreams they’ve worked so hard to build. Advisors should help Gen X clients create a holistic financial plan that sets them up to meet all their needs, including a plan to ensure their money lasts as long as they do, providing confidence and clarity when it matters most.”

Nationwide offers resources to help advisors facilitate conversations with Gen X clients, including this whitepaper which explores how annuities can help address this cohort’s inflation and market volatility concerns while also offering the clarity and control they value.

Nationwide’s eleventh annual Advisor Authority study, powered by the Nationwide Retirement Institute^® explores critical issues confronting advisors, financial professionals and individual investors—and the innovative techniques that they need to succeed in today’s complex market.

 

About Advisor Authority: Methodology
The Harris Poll, on behalf of Nationwide, conducted an online survey in the U. S. among 510 advisors and financial professionals and 2,007 investors ages 18+ with investable assets (IA) of $10K+, August 19-September 2, 2025. Among the investors, there were 580 Gen X (age 45-60).

 

Respondents for this survey were selected from among those who have agreed to participate in our surveys. The sampling precision of Harris online polls is measured by using a Bayesian credible interval.  For this study, the sample data for advisors is accurate to within ± 4.3 percentage points using a 95% confidence level. For investors data is accurate to within ± 2.8 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest.  For complete survey methodology, including weighting variables and subgroup sample sizes, please contact [email protected].

 

About The Harris Poll
The Harris Poll is one of the longest running surveys in the U.S tracking public opinion, motivations and social sentiment since 1963 that is now part of Harris Insights & Analytics, a global consulting and market research firm that delivers social intelligence for transformational times. We work with clients in three primary areas: building twenty-first-century corporate reputation, crafting brand strategy and performance tracking, and earning organic media through public relations research. Our mission is to provide insights and advisory to help leaders make the best decisions possible. To learn more, please visit www.theharrispoll.com.