Here’s the Real Cost of Failing To Save for Retirement, According to Gen X
Written by
Chris Adam
Edited by
Zuri Anderson
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For young adults who are on the fence about saving for retirement, their Gen X counterparts have a clear message: Start saving now and create an emergency fund.
According to new research, many Gen Xers wish they’d followed this advice in their younger years.
A Financial Gap
“While retirement is just around the corner for many Gen Xers — who are now in their 40s and 50 — more than half say they won’t be financially prepared when the time comes, said Scott Ward, a certified financial planner (CFP). “According to Northwestern Mutual’s 2025 Planning & Progress Study, Gen X believes they’ll need about $1.57 million to retire comfortably — roughly $310,000 more than the national average ‘magic number.'”
Yet, according to Ward, among Gen Xers who currently save for retirement, the most common response for how much they’ve accumulated is just two times their annual income. Ward said the gap between what Gen X has and what they think they’ll need underscores the need for stronger saving, smarter investing and realistic planning as this generation moves into its final stretch before retirement.
The Real Cost of Financial Regrets
Let’s dig deeper into the numbers. According to research from the CFP Board, the financial impact of Gen X’s regrets extend well beyond retirement savings. Nearly half (48%) estimate their financial mistakes have cost them at least $100,000 over their lifetimes. In fact, 13% reported losses of at least $500,000.
Overall, the research showed financial hits to Gen X’s peak earning years in their 20s and 30s still affect their finances to this day.
- Fifty-three percent of Gen Xers wish they had planned for retirement earlier (their No. 1 regret), with 33% saying not saving enough for retirement was their biggest decision regret from their 20s and 30s.
- Ripple effects include delayed retirement (31%), reduced ability to save or invest (28%) and missed travel and leisure opportunities (23%).
- Fifty-seven percent were impacted by rising housing costs, 55% saw income fail to keep pace with cost of living and 52% faced challenges with remaining gainfully employed.
- Gen X’s top advice: “Start saving for retirement now” (59%) and “Create an emergency fund” (41%).
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