Here’s Who Should Really Be Worried About Social Security Cuts
Written by
Chris Adam
Edited by
Zuri Anderson
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Lots of experts have been focused on baby boomers entering retirement at historic rates.
However, according to a new data-driven analysis, the real crisis may soon be coming — and it belongs to Gen X. GOBankingRates unpacks what this means for the aging generation, and what they can do about this upcoming retirement issue.
Facing a ‘Retirement Crisis’
According to a new paper from the Alliance for Lifetime Income’s Retirement Income Institute, 2025 marks the peak of the Peak 65 Zone — the largest wave of Americans turning 65 in history.
“While baby boomers dominate headlines, Gen X faces an even greater retirement crisis. With shrinking pensions, rising longevity and heavy caregiving burdens for parents and other family members, Gen X risks becoming the most financially vulnerable cohort to reach retirement,” the report found.
“It’s no wonder that our research shows that only 41% of Gen X are confident their money will last a lifetime, compared to 62% of baby boomers,” said Cyrus Bamji, chief strategy and communications officer for the Alliance for Lifetime Income by LIMRA. “And not surprisingly, 37% of Gen Xers plan to delay retirement because of financial concerns, significantly higher than boomers (19%).”
Missing Safety Nets
According to a retirement report by Bankrate, 69% of Gen X workers reported being behind on their retirement savings, including nearly half (47%) who said they were significantly behind (more than any other generation).
What about the Social Security safety net?
“The oldest Gen-Xers turn 65 in 2030, just three years before the Social Security trust fund is projected to be depleted,” Bamji said. “Unless Congress acts to fix this, Gen X will be the first to face around a 23% benefit cut in protected lifetime income, just as they begin to retire.”
Further, according to Bamji, “To fill the protection gap that Social Security leaves, it’s no surprise that Gen Xers said they’re considerably more interested in the lifetime income protection that annuities provide compared to boomers.”
Need To Make Changes
Bamji added that the report highlights an urgent need for expanded access to protected lifetime income solutions and policies that strengthen retirement security, ensuring Gen Xers don’t enter retirement at a disadvantage compared to the generations who came before them.
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