Why Gen X Is Losing the 401(k) Game — and How To Turn It Around, According to Jean Chatzky
Generation X isn’t ready to retire — at least financially speaking. Born between 1965 and 1980 — Gen Xers currently range in age from 45 to 60 years old.
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While the younger members of this generation likely still have a couple of decades until retirement, the older members are nearing their golden years. As of 2025, the average retirement age for women is 62.6 years old, while the average age for men is 64.6 years old, according to the Center for Retirement Research at Boston College. Keep reading to find out why Gen Xers aren’t saving enough in their 401(k) plans and how to make positive changes to prepare for retirement.
Gen X Hasn’t Kept Up With Costs
Unfortunately, only 14% of Gen X feels financially prepared for retirement, according to the 2024 Schroders U.S. Retirement Survey. Members of this generation think they will need $1,069,746 to retire comfortably, but only expect to have $602,944 saved — leaving a $466,802 shortfall.
Thankfully, it’s not too late to turn things around. A recent episode of the HerMoney podcast with Jean Chatzy featured a discussion with Yahoo Finance senior columnist Kerry Hannon, co-author of “Retirement Bites: A Gen X Guide to Securing Your Financial Future.”
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Why Gen X Is Losing the 401(k) Game
Gen X has faced a variety of obstacles that have kept many from consistently saving for retirement — or at least saving as much as needed.
“You could argue that the odds were stacked against Gen X from the start,” Chatzky said. “Traditional pensions mostly disappeared right as we entered the workforce.”
She noted that 401(k) plans didn’t become commonplace until years after Gen X entered the workplace. Add to this the economic challenges this generation has faced, including the tech bubble, the Great Recession and the COVID-19 pandemic, which further disrupted its ability to save for retirement during key earning years, she said.
Additionally, Hannon said that no one gave Gen X financial education to help them know what to invest in. Plus, there weren’t as many investment options to begin with, and at the time 401(k) investment limits were lower than they are today. All together, it feels like the deck was stacked pretty high against Gen X ever building up enough income to handle the inflation of the 2020s.
How Gen Xers Can Turn Their Retirement Savings Around
When it comes to saving money, mindset plays a large role. Hannon recommended practicing the HOVER method — hope, optimism, value, enthusiasm and resilience.
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