5 Steps Gen Xers Who Are Behind With Retirement Should Take, According to Rachel Cruze
Written by
Emily Fowler
Edited by
Amber Barkley
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Facing retirement with little to no savings can feel like staring down an impossible mountain. But there’s still a way to turn things around and build a secure future, according to financial expert Rachel Cruze. In a recent YouTube video, she addressed this growing concern among Gen Xers and broke down actionable steps to help catch up.
Her advice? It’s not too late to retire, but it will require a focused strategy and a shift in expectations.
Know the Current Situation
The first step is knowing what your current situation looks like. For many, the idea of retirement can feel overwhelming, especially when savings are minimal. Fear often amplifies the uncertainty, making it hard to assess the real picture.
To combat this, Cruze recommended gathering all financial details — 401(k) plans, IRAs, savings accounts and even employer matches — and plugging them into an investment calculator.
“I always use the Ramsey calculator because … it’s easy to change up some of [the] numbers to get some hypothetical situations,” she said.
She shared an example: someone earning $70,000 annually who invests 15% of their income — $875 a month — could save $180,000 in 10 years with a 10% rate of return. By extending retirement to age 72 and increasing contributions by 5%, the amount grows to $322,000.
Build a Strong Financial Foundation
Investing in retirement isn’t feasible without a solid financial base. Cruze’s advice for Gen Xers starts with tackling debt.
“Pause investing in order to pay off your debt faster,” she said. The debt snowball method — paying off smaller debts first before moving to larger ones — can help clear debts within 18 to 24 months, she added.
Once you’re debt-free, Cruze advised setting up an emergency fund with three to six months of expenses. It’s not just a safety net — it will allow for more aggressive retirement savings down the road. And the need couldn’t be clearer: A Forbes Advisor survey found 56% of Americans have less than $2,000 in savings, and nearly 20% have none at all.
Commit to the 15% Rule
Cruze’s 15% rule involves consistently investing 15% of income into retirement once debts are cleared and an emergency fund is in place. She explained that some people only invest the minimum to match their 401(k) — maybe 4%, 5% or 6%, so “fifteen percent is crushing it.”
Being disciplined today means retirement savings grow faster, particular for Gen Xers who might be starting later in life.
Shift Expectations
Gen Xers falling behind on retirement savings should understand that it’s never too late, but expectations might need to shift. A goal of retiring at 59 ½, for example, may not be the most realistic aim for someone in their 50s just starting to save.
Cruze recognized that adjusting plans can be tough, but focusing on what can be controlled today can help. Working longer, contributing more to retirement funds or even trimming back in other areas could make all the difference.
Work With a Professional
Late-stage retirement planning isn’t simple, and Cruze stressed the importance of teaming up with a financial advisor. A professional looks at the whole financial picture — Social Security, pensions, taxes and estate planning — and helps map it out.
Cruze’s message is clear: It’s possible for Gen Xers behind on retirement savings to catch up, but it requires intentionality and a willingness to make changes. From understanding the numbers to working with an expert, the path forward is achievable, even for those starting later.
As Cruze said, “The biggest turnaround you’re going to have in your financial situation is up to you. … You’re the one that’s going to change the course of your future financially from this day forward.”
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