Gen X, First Generation Dependent on 401k Plans
A $400K Retirement Shortfall According to Schroders' StudyMost Gen Xers Approaching Retirement Without a Plan or Advisor
Findings from the Schroders 2025 US Retirement Survey reveal members of Generation X are facing unique challenges as they prepare for their golden years, as many are falling behind on savings and lacking financial guidance.
- Only 16% of Generation X Americans (ages 45–60) feel they have saved enough money for retirement.
- Gen Xers estimate they will need 1,116,747 to retire comfortably, but expect to have just $1,116,747 to retire comfortably, but expect to have just $711,771 saved resulting in a shortfall of 404,976. This gap is larger than that facing Millennials ($404,976). This gap is larger than that facing Millennials ($353,721) and Baby Boomers ($356,684).
- More than half (53%) of Gen Xers are concerned about outliving their assets in retirement, compared to 43% of Baby Boomers and 49% of Millennials.
Although Generation X is often described as independent and resourceful, many may benefit from professional support as they plan for retirement:
Over half (53%) of Gen Xers report they have not done any retirement planning.
Just 26% work with a financial advisor, compared to 43% of Baby Boomers and 31% of Millennials.
Additional findings:
- Nearly one-quarter (24%) of Gen Xers who participate in a workplace retirement plan (such as a 401(k)) have borrowed from their plan, compared to 17% of Millennials and 21% of Baby Boomers.
- The top reasons Gen Xers cited for borrowing from their plans are: unforeseen family or personal emergencies (29%), paying down credit card or other debt (23%), and managing rising living costs (18%).
- 61% of Gen Xers are not confident they will be able to achieve their desired retirement lifestyle.
- Gen Xers remain the least likely generation to engage in retirement planning or work with a professional adviser, with only 26% currently doing so.
“While many Baby Boomers have defined benefit pension plans that provide a set income for life, Gen Xers entered the workforce as pensions were being replaced by defined contribution plans and before key features like auto-enroll and auto-escalate became common,” said Deb Boyden, Head of US Defined Contribution, Schroders. “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.”
Head of US Defined Contribution
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As Oldest Gen Xers Approach Age 60, Many Are Unprepared for Retirement and Concerned About Outliving Their Assets
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Deb Boyden, Head of US Defined Contribution