Gen X Fears Retirement Savings Won’t Last: Here’s How To Fix It
Written by
Gabrielle Olya
Edited by
Molly Sullivan
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As Americans live longer, retirement planning has become more critical than ever. Yet many Gen Xers — those born between 1965 and 1980 — worry their savings won’t last the two to three decades they may need it to.
A recent Nationwide Financial survey found that 25% of Gen X investors believe their savings will run out in 14 years or less, and more than 1 in 10 say their nest egg is already dwindling.
Here’s why Gen X faces a retirement shortfall — and what steps they can take now to bridge the gap.
Why Gen X Is Worried About Retirement Savings
For many Gen Xers, the problem isn’t just the size of their savings — it’s the lack of a plan for turning those savings into income.
“Most retirement savers spend their working careers focused on building their retirement nest egg, often by putting money into their workplace 401(k) plan,” said Suzanne Ricklin, vice president of retention and sales at Nationwide Financial. “Unfortunately, many approach retirement without a plan for how they will decumulate those assets.”
Without a clear income strategy, it’s hard to know whether savings will cover essential expenses like housing, healthcare, taxes and unexpected costs. That uncertainty is fueling anxiety as retirement draws closer.
Planning For a 30-Year Retirement Is Essential
Americans are living longer than ever. According to the U.S. Census Bureau, the number of Americans reaching age 100 will quadruple over the next 30 years.
“That doesn’t necessarily mean that you will live that long, but chances of your retirement stretching into your 90s or beyond present a real risk that you should take into consideration when planning for retirement income,” Ricklin said.
Another survey from the Nationwide Retirement Institute found that most Americans are underestimating their chances of living to 100 — only 29% of respondents said they want to live that long.
“This blind spot creates the risk that they fail to plan for that possibility,” Ricklin said. “Many advisors recommend planning for at least a 30-year timeframe, assuming you retire at age 65.”
Smart Steps To Make Your Savings Last
If you’re worried about a shortfall, start by estimating the budget you’ll need to maintain your lifestyle in retirement. From there, Ricklin said to consider these strategies:
- Optimize your strategy for claiming Social Security
- Review strategies for drawing down qualified and nonqualified savings accounts
- Consider financial solutions that guarantee income no matter how long you live, like annuities or lifetime-income solutions offered by many workplace retirement plans
You should also consider seeking out professional advice.
“A good financial professional is going to be able to help you put a plan on paper, and identify steps you can take now to optimize your chances for success,” Ricklin said.
Gen X faces unique retirement challenges, but with proactive planning, it’s possible to stretch savings for decades. Start now to reduce uncertainty and secure a more confident future.
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