Getting laid off later in life can undermine retirement security, according to a Wall Street Journal analysis of Boston College’s 2012 to 2022 Retirement Study.

Of Americans aged 50 to 65 — many of whom would be Gen X, born between 1965 and 1980 — 14% were laid off once in the previous 10 years, according to the study. And nearly a quarter of those (24%) weren’t able to find a new job.

And older workers who do manage to find a new job? They may have to accept a low-ball offer to stay employed — especially during a period of economic instability and jobs cuts related to AI and automation.

Kevin Cahill, an economist at FTI Consulting, told WSJ that, based on a forthcoming study he co-wrote, older workers who find new jobs take, on average, an 11% wage cut.

There’s a perfect storm of factors that’s making it harder for Gen X to move ahead in what should be the most successful and highest-paying years of their career.

Boomers aren’t the only ones facing ageism. An AARP study found that 64% of workers over age 50 had witnessed or experienced age discrimination in the workplace.

For example, 33% of respondents said there’s an assumption in their workplace that older workers aren’t as tech savvy as their younger counterparts, whether that’s accurate or not.

Another challenge — and one highlighted by the 11% wage cut — is that some employers may simply be unwilling to meet their salary expectations. It’s a common lament by Gen Xers that they’re “overqualified” for a position, yet there aren’t as many senior-level positions available that they would be qualified for.

At the same time, they’re passed over for leadership roles because they’re considered too old.

As a recent article in Fortune points out, instead of passing the baton onto the next generation, “baby boomers are skipping over Gen X in favor of promoting younger talent into their spots.”

Sometimes they’re even paid less than their younger (and less qualified) counterparts. In a Resume Now survey of workers aged 40 or older, 49% said they earn less money than younger colleagues who do the same job.

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Another one in five (22%) said older workers are passed over for challenging assignments, while 16% say they have an employer that “engages in a pattern of passing over older workers for promotions in favor of younger workers with fewer qualifications.”

Another assumption is that older workers are close to retirement, so there’s no point in hiring them. But many Gen Xers have to — or choose to — work well into their so-called golden years.

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At the same time, almost three in five (58%) retirees say they left the workforce sooner than planned, according to a 2024 Transamerica survey. Of those, 43% cited job loss, organizational changes or retirement buyouts as the cause.

Some Gen Xers may be forced to retire earlier than planned or take a pay cut to stay in the workforce. Either way, it impacts their retirement plans.

Either they have less money to set aside for retirement — at a time when they should be at the height of their earning power — or, if they’re forced to retire, they have to stretch their retirement savings over a longer period of time.

Even if they wait to start withdrawing funds from their retirement savings, they’ll miss out on making additional 401(k) or IRA contributions — including catch-up contributions available to workers 50+.

Plus, they may have to claim Social Security earlier than planned, resulting in a lifetime of lower benefit checks (the earlier you claim your benefit before your full retirement age, the smaller your check).

While Gen X is often called the ‘forgotten generation,’ squeezed in between boomers and millennials, they’re also the ‘sandwich generation,’ often caring for children and their aging parents at the same time.

“Many Gen X workers are facing intense financial pressure — from rising costs to juggling the responsibilities of caring for both children and aging relatives, all while managing the highest average debt of any generation in the U.S.,” Silvija Martincevic, CEO of workforce management platform Deputy, told Fortune.

For Gen X, they’re literally between a rock and a hard place. But it doesn’t mean they’re completely out of luck.

Craig Copeland, director of wealth benefits research at Employee Benefit Research Institute, told WSJ that older workers can reach out to contacts and stay active in industry-related associations.

They can also take on gig work, take courses in AI or even pivot to a new career. It could also mean delaying retirement or taking up gig work in semi-retirement.

Fortunately, if there’s one thing that Gen X excels at, it’s adaptability.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.