The “Forgotten Generation” Faces a Retirement Crisis: 10 Reasons Gen X Is So Far Behind
Gen X grew up on cassette tapes and microwavable dinners, but today many are staring at retirement charts and realizing how thin their savings look. Years of wage stagnation, shifting financial systems, and major economic shocks have left this group scrambling to catch up. With pensions fading, costs rising, and only a modest cushion in their accounts, Gen X is heading toward retirement with far less security than they expected.
Pensions Disappeared Right On Schedule
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Traditional pensions began fading just as Gen X entered the workforce. In the early 1980s, about 60% of private-sector workers had a defined benefit plan. Today the number is closer to 15%, and only 14% of Gen X has access to one. As a result, most of the generation must depend on 401(k)s or IRAs, which place the responsibility and long-term risk on the worker instead of the employer.
Eight Recessions are a Lot for One Lifetime
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Gen X has weathered more economic meltdowns than most generations. The dot-com bust hit right after college. The 2008 crash arrived during their supposed peak earning years. COVID-19 knocked down any recovery momentum. By the time inflation and housing spikes rolled in, the math became more challenging.
The Sandwiched Generation Can’t Save Freely
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Gen X is funding their future and is often covering two other generations, too. According to Pew Research, nearly a quarter of Gen X adults support both aging parents and dependent children. That kind of financial juggling doesn’t leave much for retirement contributions.
Credit Card Balances Keep Climbing
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A 2024 FINRA study showed 39% of Gen Xers carry credit card debt month to month, more than any other age group. The cost of that debt—often with double-digit interest rates—compounds faster than their retirement funds. Medical bills, car loans, and rising expenses only add to the pile.
They Started Saving Later Than Everyone had Hoped
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For many Gen Xers, serious saving didn’t begin until their 40s. Earlier decades were spent paying off student loans and raising families. Now, they’re playing catch-up in a game that rewards early starters. Even aggressive contributions may not be enough to close the gap created by years without steady savings.
The Gender Gap Hits Especially Hard
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Women in Gen X hold just over half the pension savings of their male peers, according to PensionBee. Career breaks for caregiving and long-standing pay disparities add up. That means many Gen X women face greater retirement insecurity, especially if they’ve taken time off work for children or aging parents.
Social Security Might Not Pick Up the Slack
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The Social Security trust fund is projected to run dry right around its eligibility date. Unless Congress steps in, benefits could be reduced by 23% starting in 2033. That uncertainty makes long-term planning even trickier, especially for those who were counting on Social Security to patch the gaps left by savings or lost pensions.
Part-Time Work Is Becoming the Backup Plan
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A surprising number of Gen Xers—over 40%, according to one survey—are expecting to rely on a side hustle in retirement. Some have already started freelance work or gig jobs to prepare. But working into your 70s isn’t a guaranteed solution. Health changes and market shifts all make that plan a gamble.
Housing Costs Soaked Up the Safety Net
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Home values climbed quickly, but the expenses tied to owning a home climbed just as fast. Property taxes, upkeep, and higher interest rates have taken a big bite out of any equity Gen X hoped to rely on in retirement. Selling a home to downsize is not always easy, and renting later in life can drain a fixed income much faster than expected.
Talking About It Still Feels Taboo
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Despite all the data, open conversations about retirement struggles remain rare. Nearly a quarter of Gen Xers expect help from their kids, but most haven’t mentioned it to them. That silence can delay smart decisions, like downsizing early or creating family plans.