One Generation Has Lower Retirement Savings Than Any Other — and It’s Not the One You Expect

They were the original latchkey kids, raised on independence, resilience and the quiet expectation that they’d take care of themselves.

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Sandwiched between the cultural dominance of the boomers and the digital fluency of the millennials, this generation built its identity on self-reliance rather than collective attention.

Which is why what comes next is so unexpected: one generation has lower retirement savings than any other, and it’s not the one you expect.

Gen X Has the Largest Retirement Savings Gap

Generation X is the least prepared for retirement of any living generation.

According to Schroders’ 2024 U.S. Retirement Survey, only 14% of Gen Xers feel they’re on track for retirement. On average, they say they’ll need about $1.07 million to retire comfortably, but expect to have about $603,000 saved. It’s a shortfall of nearly $467,000.

Baby boomers and millennials reported smaller gaps between what they anticipate needing and what they expect to have saved. However, despite being in their peak earning years, Gen X, those aged 44-59, is falling behind at a critical point in their financial lives.

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Why Gen X Is Lagging Behind

They’re holding too much cash: The Schroders survey found that 35% of Gen X retirement assets are sitting in cash rather than being invested for growth. While this can feel safe, it leaves their savings vulnerable to inflation and limits long-term returns.

They lack formal plans: Nearly half of Gen X respondents said they have no formal retirement plan, and only 27% work with a financial advisor. Without clear targets and strategies, it’s easy for this generation to underestimate what they’ll need.

They may claim Social Security early: Only 10% plan to wait until age 70 to claim benefits — the age that maximizes monthly payments. Many expect to claim earlier, which could mean lower lifetime income at a stage when every dollar counts.

The Stakes Are High

More than half of Gen Xers (54%) say they’re worried about outliving their savings, according to Schroders.

With less time to recover from market downturns, rising healthcare costs, and longer life expectancies, this generation faces significant financial pressure as retirement approaches.

Unlike younger generations, Gen X doesn’t have decades to course-correct. Without strategic changes, many could find themselves working longer than planned, scaling back their lifestyles, or relying more heavily on Social Security than anticipated.

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How Gen X Can Catch Up

Max out catch-up contributions: Those aged 50 and older can contribute an additional $7,500 annually to 401(k) plans, along with extra contributions to IRAs. Taking full advantage of these provisions can help close the savings gap in the critical final stretch before retirement.

Revisit asset allocation: Shifting a portion of cash holdings into a balanced portfolio with growth potential can help Gen Xers make up lost ground. The Schroders survey suggests that holding too much cash is one of the biggest factors limiting retirement readiness for this group.

Delay Social Security if possible: Waiting to claim benefits until age 70 results in larger monthly payments. It’s a strategy that can provide a stronger financial cushion later in life.

Work with a financial advisor: Nearly half of Gen Xers don’t have a formal plan. Professional guidance can help set realistic savings targets, optimize investments, and make informed decisions about retirement timing and income sources.

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This article originally appeared on GOBankingRates.com: One Generation Has Lower Retirement Savings Than Any Other — and It’s Not the One You Expect

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