For Generation X, retirement looms. The kids who played video games in arcades, spent endless hours in shopping malls and first accessed the internet through a dial-up connection are now well into middle age.
As the end of work approaches, many Gen Xers are starting to panic. Surveys and other research have found that those born between 1965 and 1980 are much less financially prepared for their golden years than their baby boomer forebears were.
Here are the top reasons why Generation X is in dire financial straits.
They fear the market is at a critical juncture
Over the past three years, the stock market has been red-hot, experiencing its greatest run since the 1990s. That should be good news for all investors, especially Gen Xers who need their nest eggs to grow fast.
But history has shown that when the stock market rises for an extended period, a sharp correction is often in the offing. Members of Generation X have lived through enough bear markets to know that good times don’t last forever.
Perhaps with that in mind, just 19% of Gen Xers think now is a good time to invest in stocks, according to the Allianz 2025 Q3 Quarterly Market Perceptions Study. As recently as the second quarter of 2025, that number was a much higher 30%.
Concerns about a possible impending stock market crash have left Gen Xers especially worried as their careers wind down.
Their savings are being squeezed as retirement nears
For most of their adult years, Generation X did not have to worry about inflation. After surging in the late 1970s and early 1980s, inflation virtually disappeared from the U.S. economy for several decades.
However, things have changed dramatically in recent years. In the wake of the COVID-19 pandemic, inflation has soared, reaching heights not seen in 40 years. More than three-quarters of Gen Xers — 81% — say they fear the rising cost of living will prevent them from enjoying the retirement lifestyle they desire, according to Allianz.
Among members of this generation, 81% also worry that President Donald Trump’s recent tariff policies will increase or have increased their cost-of-living expenses.
Finally, 70% of Gen X respondents say inflation has prevented them from saving as much as they would like.
They are the first post-pension generation
A 2023 Corebridge Financial Survey found that just 27% of Generation X workers have pensions that will provide them with a guaranteed income.
That is much lower than the 45% of baby boomers who have a defined-benefit retirement plan.
In some ways, it is fair to consider Generation X to be the first post-pension generation. Without access to pension-related income, Generation X will be forced to rely on Social Security and personal savings to fund a retirement that might stretch out over several decades.
They are overly reliant on Social Security
Social Security was never meant to be the only source of income for retirees. And yet, Generation X will heavily count on the program during retirement.
The vast majority of those in Generation X — 81% — say they will rely “substantially or somewhat” on Social Security for their retirement income, according to a recent AARP poll.
At the same time, 77% of Gen Xers are worried that Social Security will not be there for them during their golden years.
Learn more about how people are changing how they plan for retirement in “3 Retirement Rules That People Are Abandoning in 2025.”
Add a Comment