Will Gen X be able to retire?

Latchkey kids raised on The Brady Bunch now have a bigger problem on their hands than Mr. Dittmeyer: Saving up enough to retire.

Gen X is approaching retirement age, and their financial safety net is looking more like a basketball hoop. This generation, which includes people born between about 1965 and 1980, were the guinea pigs of DIY retirement. Born after pension plans were dominant but before auto-enrollment made it easy to invest in 401(k)s, they were largely on their own—and the results are alarming.

Now, 8 out of 10 Gen Xers say they worry they don’t have enough for retirement, according to the latest Schroders 2025 US Retirement Survey. Gen X workers have saved a median $107,000 in total household retirement income. Sure, that’s not nothing, but it falls way short of the $1.26 million Americans say they need to retire comfortably.

The problem, according to Nationwide Financial, is that roughly 61% of Gen X didn’t view retirement as a serious priority until age 50 or older. It doesn’t help that they have the highest student loan and credit card debt of any generation.

If that all wasn’t brutal enough, those trying to catch up by making higher contributions to 401ks are about to get hit with a steep tax bill. Under a new law, higher-income people making catch-up contributions will lose some of the tax benefits that come with the 401(k) structure.

How to get ahead

Retirement planning is a marathon, not a sprint—but experts have some ideas for how Gen X can pick up the pace.

“The oldest Gen Xers are roughly 10 years from full retirement age, and that provides a window for them to cut this savings gap and explore solutions that can improve their transition from asset accumulation to asset decumulation,” explained Head of US Defined Contribution for Schroders Deb Boyden.

Workers can save up to $24,500 in their 401(k)s next year, and can add an additional $8,000 if they are 50 or older, while “super catch up” contributions for those age 60 to 63 allow workers to deposit up to $11,250 extra.

While it can feel tempting to make a big financial move to make up for lost time, it’s more crucial than ever to maintain a diversified portfolio, and not lose money trying to time the market or by picking risky stocks.

That means no more r/WallStreetBets for you, Gen X.—LB