Insights & Education

Don't you forget about me

65 million strong and quickly marching towards retirement, Gen X is a generation that should not be overlooked, discounted or forgotten.

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Research from Corebridge Financial reveals important insights about Gen Xers’ financial capabilities, concerns and retirement planning priorities.

Gen X: The often forgotten generation nears retirement

While the Boomers that came directly before them and the Millennials that came directly after garnered significant media attention over the years, Generation X has largely slipped below the radar. And today, all the buzz seems to be about Gen Z. But with retirement approaching for Gen X, it’s about time they get the attention they deserve.

The 65 million Americans who make up Gen X are at a critical stage in their retirement planning and savings journey. Currently between the ages of 46 and 61, they are in their prime earnings and savings years, but with a smaller window of time to save for retirement than Millennials and Gen Z. As they become empty nesters, Gen Xers can also turn more serious attention to planning for retirement.

Feeling the pressure

Among all generations, Gen Xers are generally the least confident in their financial abilities and their financial future.

Preparing for what's ahead: Just one-third (33%) are very confident in their ability to plan for a successful financial future. And only 29% are very confident in their ability to manage their retirement money to provide income for as long as they live.

Covering unexpected expenses: Only 30% are very confident in their ability to pay for unexpected expenses, such as a medical emergency.

Not outliving their money: Less than a quarter (24%) are very confident they won't run out of money.

And while they may lack financial confidence, Gen Xers make up for it in other areas. They are widely known to be highly educated, resilient, independent, and pragmatic.

_{Response totals shown above reflect extremely or very confident.}

Gen Xers' top concerns about living a 100-year life

1. Cognitive decline / Physical decline: 68%

2. Healthcare costs / Quality of life: 66%

3. Serious health problems: 65%

4. Independence in later life: 64%

5. Being a burden on family: 57%

Response totals shown above reflect extremely or very concerned.

More concerned than excited about longevity

Americans are living longer — and while that’s great news, some are less excited about it than others. 48% of Gen Xers say they want to live to 100, compared to 44% of Boomers, 51% of Millennials, and 55% of Gen Zers. However, when thinking about living a very long life, such as to age 100, Gen Xers say the top benefits are continued meaningful relationships with family and friends (80%), witnessing new discoveries and watching the world evolve (65%), and more time to explore and have new experiences (62%).

If they were to live a very long life, such as to age 100, Gen Xers are more concerned than any other generation about cognitive decline, healthcare costs and independence in later life. These concerns — and their worry about not being prepared — may help explain Gen X's reservations about living to 100.

Not thrilled about the idea of working longer

While Gen Xers may need to work longer than they originally anticipated, they are not excited about the possibility of adding too many years to their working life. If they were to live to 100, close to half (44%) of Gen Xers would find it extremely or very concerning if they had to add 10 or more years to their working life, underscoring the importance of taking action on their retirement planning now. Perhaps not surprisingly, the generations closest to retirement — Gen X and Baby Boomers — are most likely to say they will need to work to age 70 or later before they can retire.

One way that Gen Xers can boost their retirement security is to work part time at something they enjoy after retiring. Continuing to collect income can help them accumulate additional retirement savings, while also delaying the need to draw from their savings. Many retirees also find that staying active and engaged adds to their overall health and satisfaction. The same may hold true for Gen X.

Most significant planning challenges facing Gen Xers today

1. Inflation: 90%

2. Rising cost of healthcare: 87%

3. Concern about the long-term viability of Social Security and Medicare: 85%

4. Uncertainty about my future health: 76%

5. Knowing how to generate retirement income / Uncertainty of how long I will live: 75%

6. Stock market volatility: 74%

7. Uncertainty of how long I will work: 68%

Response totals shown above reflect extremely, very and somewhat challenging.

Facing financial obstacles but getting priorities in order

Gen Xers must quickly and delicately balance today’s financial realities with tomorrow’s financial needs.

Near-term financial needs and economic pressures are hindering Gen Xers’ ability to focus on long-term savings. Nine in ten (90%) say inflation is a planning challenge, and 87% point to the rising cost of healthcare. What's more, nearly one-third (31%) say their overall sense of financial security has declined within the past year.

With inflation and rising healthcare costs cited as top concerns, and nearly three in four worried about stock market volatility, it will be important for Gen Xers to look for ways to keep their money invested to help capture the long-term market growth potential they need, while also managing downside market risk as they get into the critically important years just before and after they retire.

Looking for lifetime income beyond Social Security

For Gen Xers, lifetime income solutions will likely play an important role in their retirement portfolios. However, only 23% say they have a pension, and less than 10% have an annuity.

The good news is that in addition to ramping up their retirement savings and financial planning, Gen X is also ready to take action to secure lifetime income. In fact, nearly nine in ten (89%) say it's a priority in the next year.

Gen Xers' financial-related priorities

1. Increase or begin retirement savings / financial planning: 90%

2. Secure lifetime income in addition to Social Security: 89%

3. Start or grow an emergency fund: 85%

4. Pay off non-mortgage debt: 78%

5. Create an estate plan: 71%

6. Work with a financial professional: 67%

Moderate, high or highest priorities

For Gen X, all is not lost but action is required

When it comes to preparing for retirement, all is not lost for the forgotten generation. Although Gen Xers may lack confidence in their financial abilities and their financial future — and they face some key planning challenges — their financial priorities suggest they clearly know what’s missing and they know what they need to do next. Now is the time to conquer inertia and put priorities and plans into action.

While many in this generation take well-deserved pride in their sense of independence and self-reliance, seeking out professional financial guidance may be a game changer for them. Working closely with a financial professional can help Gen Xers get closer to where they need to be as retirement nears.

Our “8 Retirement Action Steps for Gen X” makes it easy for Gen Xers to take action for the future.

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Action is everything.

At Corebridge, we believe that great things can happen when people take action.

We’re committed to helping Gen X actively plan and prepare for retirement through the resources, tools and solutions we offer — and through the financial professionals and institutions we proudly partner with.

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