Gen Xers are unsure about their retirement prospects, according to a new report from Zety, a leading resume builder. The company recently released its “Gen X Financial Outlook Report,” which found that recent inflation is dealing the heaviest blow to their future financial plans.
With a majority living paycheck to paycheck and feeling far less secure than they anticipated at this stage in their lives, the traditional finish line of retirement is slipping out of reach for many, according to the report. Nearly 20 percent of Gen Xers don’t expect to ever fully retire, while another 19 percent plan to work well past the traditional retirement age of 68 or older.
The report states that the financial squeeze on Gen X has never been tighter. When asked which major economic events have negatively impacted their personal finances, recent inflation stood out above all others: 64 percent blamed rising costs and recent inflation (2022-present), 46 percent blamed the COVID-19 pandemic, 23 percent blamed the 2008 financial crisis/Great Recession, and 10 percent blamed the dot-com bubble of the early 2000s.
The current cost of living is making day-to-day survival a challenge for many Gen X professionals, with 36 percent of respondents saying their income just covers their expenses and 22 percent saying their income doesn’t cover their expenses at all.
The report notes that years of economic instability have changed how Gen X workers think about retirement. More than half say past economic downturns weakened their confidence in their retirement strategy, including 20 percent who completely lost confidence and made major changes to their plans.
As a result, many are taking practical steps they hope will strengthen their long-term financial outlook: 44 percent are reducing their spending, 35 percent are paying down debt, and 34 percent are increasing their savings or contributions.
Even as Gen X workers take steps to improve their finances, retirement remains a moving target. Concerns about long-term financial preparedness continue to weigh heavily: 15 percent plan to retire at 59 or earlier, 16 percent plan to retire between 60 and 64, 20 percent plan to retire between 65 and 67, 19 percent plan to retire at 68 or older, and 19 percent don’t expect to ever fully retire.
Looking ahead, respondents identified their biggest retirement concerns: 52 percent worry they haven’t saved enough for retirement, 24 percent are concerned about healthcare costs, 14 percent are worried about outliving their savings, and 11 percent fear a market downturn before they retire.
Looking back, retirement planning remains a source of regret for many respondents, with 43 percent regretting not starting to save for retirement earlier and 21 percent regretting not saving consistently throughout their careers.
“Gen X has spent much of its working life adapting to one economic challenge after another,” said Jasmine Escalera, career expert at Zety. “Retirement is no longer a fixed milestone but something they have to continually rethink as economic conditions change. That reality is reshaping how this generation approaches work, savings, and financial planning.”
