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GOBankingRates’ editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services – our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines<\/a> and our products and services review methodology<\/a>.<\/p>\n 20 Years Trusted by Baby boomers may just be the last generation to have had a smooth and financially secure retirement<\/a>. For their children, most of whom are Generation X, retirement will not be as easy as it was for their parents.<\/p>\n Cost of living, healthcare and housing prices are rising faster than wages \u2014 eroding savings and increasing reliance on credit, according to Natalia Brown, chief consumer affairs and creditor relations officer at National Debt Relief<\/a> (NDR). Many Gen Xers are finding they need to work longer, delay retirement or tap into their limited savings just to stay afloat.<\/p>\n Here are some of the other reasons why Gen X can\u2019t retire like boomers<\/a>, and what they can do about it<\/a>.<\/p>\n Gen Xers Have Less Saved<\/p>\n Many Gen Xers are entering their 50s and early 60s with both debt and significant anxiety about their finances<\/a>, Brown said, citing an NDR survey<\/a> which found that \u201cmost Gen Xers in debt lack confidence in their ability to retire as planned and have deep concern that Social Security alone won\u2019t be enough to sustain them.\u201d <\/p>\n Gen Xers Survived More Economic Disruptions<\/p>\n Additionally, \u201cGen Xers have been through a lot\u201d at the economic level, according to Jay Zigmont, CFP, founder of Childfree Trust<\/a>.<\/p>\n \u201cJob disruptions disrupt retirement savings. Crashes add to the uncertainty and may result in Gen Xers having less money saved and taking less risk when investing,\u201d he said.<\/p>\n Indeed, unlike boomers, Gen Xers have faced major economic disruptions during their critical wealth-building years, such as the dot-com crash, the 2008 housing crisis and the COVID-19 pandemic. Add to this \u201cstagnant wages and rising costs,\u201d Brown said it\u2019s no surprise that many Gen Xers now face financial strain.<\/p>\n These economic hardships have also left many Gen Xers feeling financially cautious, if not discouraged. However, she said that financial confidence can be rebuilt<\/a> \u201cwith a plan, support and the belief that it\u2019s not too late.\u201d<\/p>\n Gen Xers Are a Sandwich Generation<\/p>\n Gen Xers are also a key \u201csandwich generation\u201d with many of them financially supporting both their children<\/a> and their aging parents, sometimes while still managing their own debt. \u201cThis juggling act makes it extremely hard to prioritize retirement savings,\u201d Brown said. She pointed out that \u201cthese overlapping responsibilities are draining both time and money, which is why so many Gen Xers feel behind.\u201d<\/p>\n Zigmont pointed out that caring for parents is so common that \u201cwe now include it as a core step in our clients\u2019 financial plans.\u201d<\/p>\n Boomers Had Pensions; Most Gen Xers Don\u2019t<\/p>\n Boomers reaped the benefits of \u201cthe original design for retirement planning,\u201d Zigmont pointed out, which focused on four parts: pension, retirement savings, Social Security and building equity in one\u2019s primary residence.<\/p>\n Unfortunately, \u201cpensions are now rare<\/a>, except for people working in public service,\u201d he said. In fact, he explained, 401(k) plans were first introduced with the intent to help grow retirement savings, but most employers saw them as a cheaper option than a pension, so they stopped offering pensions.<\/p>\n \u201cGen Xers are the first generation to retire without pensions. It is often called the \u2018401(k) experiment\u2019 as we don\u2019t know if it will work or if people truly saved enough,\u201d Zigmont said. What is known is that Social Security is not enough to retire on alone, making 401(k) plans more crucial than ever.<\/p>\n Many Gen Xers Live Paycheck to Paycheck<\/p>\n Simply put, the higher cost of living<\/a> is impacting everybody, but Gen Xers are just closer to retirement than their younger peers, so it comes with added stress. Zigmont also pointed to rising housing costs and overall inflation. <\/p>\n \u201cIf you are living paycheck to paycheck, you don\u2019t have the money to retire at all,\u201d he said.<\/p>\n Debt Is Holding Gen X Back<\/p>\n Zigmont said that there\u2019s a necessary step for Gen Xers who feel behind on retirement to be able to route more money to that end: Get out of debt first. <\/p>\n \u201cMany Gen Xers will have to delay retirement to make ends meet,\u201d he said.<\/p>\n What Gen Xers Can Do To Catch Up<\/p>\n Despite this grim outlook, it\u2019s never too late to take meaningful action. <\/p>\n![\"\"](\"https:\/\/cdn.gobankingrates.com\/wp-content\/uploads\/2023\/11\/icon-20.svg?webp=1&quality=75\"){kind=icon}
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