In 2025, Gen Xers are currently between the ages of 45 and 60. As a Gen X myself, part of me still feels like retirement is for “old” people…but then looking in the mirror I’m quickly realizing, I am old, lol! The reality for many Gen Xers is that retirement is no longer so far in the future that we can ignore it. In fact, it’s time to accept that it’s coming AND prepare before it’s too late.
As an older Dad for reasons that were largely out of my control (https://www.marketwatch.com/story/like-going-to-hell-and-back-battling-cancer-gave- this-financial-adviser-skills-to-build-trust-and-listen-better-11645085689) Even as a financial advisor, I’m still learning to juggle the financial demands of raising a family, saving for college and retirement. I’ll admit it’s a lot harder than it seems!
My fear for Gen X is that they’ve slipped behind their savings goals juggling those same goals. Every year the laws that impact retirement savings and the tax laws seem to change so often that I can’t help but worry that collectively as a group our financial literacy is too weak to optimize how and where we save. BUT there is still time!
Much of GenX stands on thin ice, financially speaking
My feelings are supported by study after study.
Just late last year, Money.com noted GenX is an age group largely defined by financial uncertainty, one of the first generations to cope without the widely-used employer- provided pension plan. If there’s one generation that needs financial coaching the most, it’s Gen Xers. Yet sadly that same article points out fewer Gen Xers are utilizing an advisor compared to other generations. They seem to be in denial of their financial situation, or at least of their need for financial guidance!
Most of us Gen Xers don’t even know what our goals should be, let alone how to execute on them…so here comes the “sales pitch”… a professional advisor can help with this aspect! For most of us Gen Xers, there’s still ample time to seek expert guidance, start seriously planning, optimize what you’re currently doing, and set a clear course to retirement before the planning window closes.
Sometimes I see simple mistakes
One issue I frequently come across when conversing with fellow Gen Xers is they assume they’re on a successful path because “Yes my spouse and I are saving in our 401(k)s at work.” They sort of stop at that, and think they are doing everything they need to do.
However, it’s not unusual for us to see Gen Xers who are being too conservative in their investment approach. For example, a couple years ago, I observed a Gen Xer with $200,000 in their retirement account.
So, they were doing pretty good, right? However, it wasn’t invested the way it ought to be – it was 100% in a money market! Which meant they had been making just a return of 2-3% in interest the past few years.
This is just one example of certain scenarios we see, and they can be frustrating to see: a hard-working Gen Xer who thought they were doing the right thing, but didn’t have the proper knowledge to know they weren’t doing everything they should and could be. The epitome of opportunity cost.
Gen Xers need to face reality; we are all going to retire at some point!
I’ve lost track of how many of my fellow Gen Xers have joked “I’m never going to retire, so why even worry about saving for retirement?”
I then have to remind them that the leading cause of “early” retirement (earlier than the person was ready for) is a health issue. Many of us Gen Xers joke in public settings about working till we die, but that joke is old, and we need to stop kidding ourselves. We are going to stop working at some point, so why not DO something now to make it easier on our future selves?
Many of us also need to admit that we’re not experts at retirement planning. In the last five years alone, with the passage of the SECURE Acts, a whole slew of rules for the optimal way to save for retirement have changed. As a financial advisor, it’s hard to keep up with all the rules ourselves! (And some of these rules haven’t even gone into effect yet, 2026 will see a huge chunk of new rules roll out. It’s great for my own job security, but it’s a maze for the average person to navigate through!)
It’s never been easier to find professional help. Gone are the days when only the ultrarich had access to sound financial advice. StrategicPoint is here to assist.
A recent Kiplinger report found that in 2024, 71% of Gen X is “considering delaying their retirement, up from 65% in 2023, according to a recent survey from F&G.” And 49% of the generation said, “they are worried about not having enough money for retirement.”
I’m not always a big fan of surveys, but if I take this survey at face value, how many of these people would benefit from a second opinion on their own analysis? Most, if not all?
If they’re not comfortable doing it on their own, now is the time for Gen Xers to work with a financial advisor to start conducting retirement projections, use proper financial forecasting tools, and strategize in order to protect their nest egg.
Better late than never
The same way credit card debt lingers (and with interest becomes more costly to pay off over time), retirement planning also becomes a greater financial drag when delayed.
Not only does the direct cost increase with time, but I also remind clients of opportunity costs that occur from putting off retirement planning. When working with an experienced financial planner, you’re exposed to nuanced strategies surrounding retirement savings accounts (IRAs, 401(k)s, Roths, etc.), advanced tax planning, estate and asset transfer guidance, and more. Tackling these on your own is rarely the best approach, even for my clients with a professional finance background. That’s why Gen X could benefit from working with professionals like we have at StrategicPoint.
By acting now, Gen Xers could improve their retirement picture and save enough cash to live comfortably in their golden years. Waiting only adds stress and financial strain that could have been avoided with early, consistent action.
The time to build a lifeboat is now, not when the storm is upon us
I’ve worked with plenty of Gen Xers that see the raw numbers of their net worth and the self-realization sets in that they aren’t quite where they thought they were. Other times, other Gen Xers meet with me and realize they are doing a decent job, but things can be tweaked to really optimize THEIR plan. For many of us, small changes made now can still have rather large and beneficial effects on the average Gen Xers retirement plan…but trying to do this alone can be daunting. Maybe it’s time to seek out some professional help?
Derek Amey serves as Managing Partner and CIO at StrategicPoint Investment Advisors in Providence and East Greenwich. You can e-mail him at damey@strategicpoint.com.
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