Published on Mar 3, 2026 • Updated on Jun 22, 2026
This article was written by Adem Tumerkan
Content Editor, Dunham | 2025 ThinkAdvisor Luminary Award Winner | 2026 Wealthies Finalist — Thought Leader of the Year | Macroeconomics, markets, geopolitics & global trends
Subscribe to get the latest insights delivered straight to your inbox.
We care about your data in our privacy policy
According to the data, the numbers are pretty grim with median savings of just $40,000, 40% claiming nothing saved at all, and a generation that swapped guaranteed pensions for a 401(k) experiment nobody fully explained to them and didn’t work well at the time.
So I want to revisit the Gen X retirement crisis - because things haven't gotten better.
If anything, they've gotten more urgent. And there's a new twist that gets to theheart of the problem.
And that’s Gen X didn't ignore plans. They just didn't take it seriously until it was almost too late.
Here's a stat that should stop you cold.
Yes. That’s right. The oldest Gen Xers turned 60 in 2025 - meaning a huge chunk of this generation is only now - right now - feeling the pressure.
In their heads, they’re now just five years from retirement age (65). Well, at least what historically was considered retirement age.
This wasn’t laziness. And it wasn’t ignorance either.
Instead, Gen X grew up being told to handle things themselves - hence why they were called the latchkey kids. They were left home alone while both parents worked. They figured things out on their own. And for decades, retirement felt distant - something that happened to other people, older people, people with pensions.
But pensions more or less went away. And nobody sent Gen X the updated memo in time.
Here's where the math gets troubling.
But their average savings is just $108,600.
That's a savings gap of $1.45 million.
And while some of that can be closed through aggressive saving and smart strategy, the window is closing fast.
By 2027, the oldest Gen Xers will be eligible for Social Security. And by 2033 - when many will be in their early retirement years - the Social Security trust fund may only pay out 77 cents on the dollar.
Behind on savings + shaky safety net assumptions + time running out = problems.
That's the situation Gen X is trying to wrestle with.
Gen X's self-reliance was always their ace. But it may have become a liability in retirement planning.
Only 27% of Gen Xers work with a financial advisor - behind Boomers at 37% and even Millennials at 31%. In fact, nearly half haven't started planning for retirement at all.
The Nationwide survey I referenced above found something interesting, though.
Once Gen Xers did feel the urgency kick in, many acted fast:
So it's not that Gen X can't take action. It's that the trigger came late.
Too many spent their prime saving years getting squeezed from every direction - mortgages, their kids' tuition, aging parents, inflation, a global meltdown eerily similar to 1929 (2008) and kept telling themselves retirement could wait just a little longer.
But it can't anymore.
It's easy to look at the Gen X retirement crisis as a personal finance failure. But it isn't.
It's structural.
Gen X should really be called the "sandwich generation" - simultaneously supporting adult children and aging parents (financially and logistically).
One in four Gen Xers is reportedly counting on financial help from their kids in retirement. Yet many haven't even had that conversation with their families yet.
Meanwhile, healthcare costs are adding pressure from another direction.
These are the kinds of costs that Gen X is starting to think about.
Here's the behavioral pattern that worries me most.
Because Gen X fears Social Security won't be there for them - 43% plan to claim benefits early - well before the optimal age.
It's an understandable instinct to take what you can while you can.
But it's also one of the most expensive decisions a retiree can make.
And sadly, this is the ironic part.
The very people most afraid of running out of money are making a move that dramatically increases the likelihood of running out of money.
This is exactly the kind of decision a good advisor can help untangle.
The picture is serious, but it's not hopeless. There are real levers Gen Xers can pull right now:
Last year I said Gen X was staring down tough challenges. And I still stand by that since I can’t ignore the math.
But what I'd add now is this - the defining feature of the Gen X retirement crisis isn't the savings gap, the debt load, or even Social Security uncertainty.
It's the 20-year delay in urgency.
But there’s some light at the end of the tunnel - because urgency is finally here.
And for a generation that's always figured things out when pushed - the latchkey kids who raised themselves, survived the dot-com crash, weathered 2008 and COVID, and kept moving - that urgency might be exactly what finally gets them across the finish line.
So yes, the clock is nearing the end. And it’s getting louder.
But it's still ticking.
Why is Gen X so unprepared for retirement? Gen X entered the workforce just as pensions disappeared and 401(k)s took over — without the tools or guidance to use them well. Back-to-back recessions, rising costs, and sandwich generation pressures did the rest.
How much has Gen X saved for retirement on average? According to data, it’s around $108,600 — against the $1.56 million most Gen Xers say they need. That's a $1.45 million gap with a shrinking runway to close it.
When should Gen X claim Social Security? Later than most plan to. Claiming at 62 locks you into 70% of your full benefit for life. Waiting until 70 brings that to 124%. It's one of the highest-leverage decisions in retirement planning — and one worth discussing with an advisor.
Is it too late for Gen X to catch up on retirement savings? No — but the window is closing. Catch-up contributions, debt reduction, and a written plan can still move the needle meaningfully, especially for those 60–63 who qualify for the SECURE 2.0 super catch-up.
What is the Social Security trust fund problem for Gen X? The trust fund may only pay 77 cents on the dollar by 2033 — right as many Gen Xers retire. Legislative fixes are likely, but the uncertainty is real and shouldn't be ignored in your planning.
Why don't more Gen Xers work with a financial advisor? Self-reliance appears hardwired into the latchkey generation. Only 27% work with an advisor — trailing both Boomers and Millennials. And at this stage, that independence may be their most expensive habit.
This communication is general in nature and provided for educational and informational purposes only. It should not be considered or relied upon as legal, tax or investment advice or an investment recommendation, or as a substitute for legal or tax counsel. Any investment products or services named herein are for illustrative purposes only and should not be considered an offer to buy or sell, or an investment recommendation for, any specific security, strategy or investment product or service. Always consult a qualified professional or your own independent financial professional for personalized advice or investment recommendations tailored to your specific goals, individual situation, and risk tolerance. All examples are hypothetical and are for illustrative purposes only.
Information contained in the materials included is believed to be from reliable sources, but no representations or guarantees are made as to the accuracy or completeness of information.
Dunham &Associates Investment Counsel, Inc. is a Registered Investment Adviser and Broker/Dealer. Member FINRA / SIPC. Advisory services and securities offered through Dunham & Associates Investment Counsel, Inc.
