Gen X & Retirement: It's Not Too Late
Generation X is often called the "sandwich generation," caught between aging parents and growing children, and it is the next generation approaching retirement. The data below describes where Generation X stands and why there may still be time to make progress.
Retirement Confidence and Savings
According to Transamerica 2025, the picture for Generation X includes the following figures:
- 18% are very confident they will retire comfortably.
- $107,000 is the estimated median household retirement savings.
- $6,500 is the median emergency savings.
Competing Financial Priorities
Generation X is among the top two generations prioritizing paying off debt ahead of saving for retirement, according to Transamerica 2025. This approach may make building an emergency fund more difficult. Without a cushion of emergency savings, it may become easier to take on additional debt. Many households are also supporting aging parents and helping with children's college costs at the same time. Transamerica 2025 reports that 41% of Generation X have emergency savings of less than $10,000.
Time Remains for Many
Most members of Generation X are in their peak earning years, and the youngest have approximately two decades before retirement. That time horizon may give households room to make progress by starting, or increasing, their savings. Individual results depend on income, expenses, and market conditions, and savings may lose value.
Generation X is already taking action. Transamerica 2025 reports that 82% are saving, contributing a median of 10% of their annual compensation. The same research suggests that 73% of this independent, do-it-yourself generation tends not to work with a financial professional.
A Few Considerations
- Contributing enough to receive the full employer match, where a plan offers one, and gradually increasing the contribution rate over time.
- Building emergency savings alongside paying down high-interest debt.
- Speaking with a financial professional. Participants in an MCF-advised plan may contact their plan's dedicated financial advisor to discuss their goals.
Source: Transamerica 2025.
This article is provided for general educational purposes only and is not legal, tax, or individualized investment advice.
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