Gen X Retirement at Risk: 4 Obstacles Advisors Say You Must Tackle Now
Written by
Gabrielle Olya
Edited by
Molly Sullivan
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Gen X is entering the retirement zone — they’re now ages 45 to 60 — but many feel far from ready. Rising costs, debt and family obligations are making it harder than ever to retire comfortably.
Financial advisors who work with Gen Xers acknowledge that this generation has faced some unique headwinds when it comes to retirement prep. Here’s what they see as the biggest obstacles, and how Gen X can move past them.
1. Housing Costs Are Eating Into Gen X Retirement Plans
According to a Nationwide Retirement Institute study, 39% of financial advisors believe that rising housing costs — including rent, mortgage and property taxes — are the biggest obstacle to their Gen X clients’ retirement readiness. However, on the flip side, owning a home can be a benefit in retirement.
“Many Gen Xers are homeowners and have paid off or are close to paying off their mortgages,” said Suzanne Ricklin, vice president of retention and sales at Nationwide Financial. “A paid-off home not only eliminates a major expense in retirement but also serves as a significant asset that can be leveraged in retirement if you need it.”
2. Gen X Could Run Out of Money in Retirement
Financial advisors and Gen Xers themselves both view insufficient retirement income as a major obstacle to this generation’s retirement readiness, with 39% of advisors and 32% of Gen Xers seeing this as the top obstacle.
“There is significant anxiety related to retirement income among Gen X savers,” Ricklin said.
The study found that 25% of Gen X investors are concerned their savings won’t last more than 14 years.
“That’s a big risk for those individuals because the average retirement is likely to last longer than 14 years for a healthy person,” Ricklin said. “Many financial advisors share that unease.”
3. Debt Is Derailing Gen X Retirement Goals
Over one-third (36%) of financial advisors believe that personal or family debt — including credit card and student loans — is a major obstacle for their Gen X clients. Gen Xers themselves agree — 20% of Gen X investors cited high levels of personal or family debt as one of the biggest obstacles to their retirement readiness.
“Some in this position may feel like they need to choose between paying down debt and investing for their future,” Ricklin said.
However, this doesn’t have to be an all-or-nothing choice.
“It’s usually wise to prioritize paying down higher interest debt, but it’s important to balance debt reduction with saving or you may risk missing important opportunities to grow your assets through investment — particularly if you are still several years away from retirement,” Ricklin said.
4. Supporting Family Is Straining Gen X Savings
Thirty-five percent of financial advisors surveyed said that having to provide financial support for children and/or aging parents is putting a strain on their Gen X clients’ retirement readiness.
“Our data shows this is a serious concern for Gen X,” Ricklin said. “According to the Nationwide Retirement Institute’s 2025 Long-term Care survey, nearly half (49%) of Gen Xers who identified as a caregiver said they are afraid caregiving expenses will keep them from ever retiring.”
How Financial Planning Can Help Gen X Overcome These Obstacles
Although Gen X is facing some major challenges, having a plan to address them can help them retire on time and with sufficient savings.
“It’s almost impossible to change course without mapping out a plan,” Ricklin said. “It’s important to identify a lifestyle you can realistically expect to maintain in retirement, understand the expenses you will face in achieving that, and think about how far your income will stretch.”
When Gen X does that, they may find that the numbers don’t add up.
“That’s actually a good thing because it will help you spotlight key actions you need to take before retirement, including how much more you may need to save, how you invest that money and what trade-offs you may need to make,” Ricklin said.
She recommended working with a financial professional to help Gen Xers come up with a plan that works or tapping into free or more affordable resources.
“Many workplace retirement plans offer free or low-cost resources for mapping out retirement, planning for decumulation and calculating the expenses you need to plan for,” she said.
The sooner Gen Xers map out a realistic plan, the better their chances of retiring on time.
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