Is Running Out of Money Gen X’s Biggest Financial Scare?
Born between 1965 and 1980, Generation X now faces a growing financial crunch. Seventy percent fear running out of money more than death. They are contending with inflation, shaky Social Security, and a massive 1.45 million dollar savings gap. With no pension safety net and retirement on the horizon, it is crunch time for Gen X, yet a path forward still exists.
Why Gen X worries most
Gen Xers face a unique mix of money worries that set them apart from both older and younger generations.
Running dry beats dying
Seventy percent of Gen Xers (born 1965 to 1980) say they fear running out of money in retirement more than death. That percentage tops both Millennials at 66 percent and Boomers at 61 percent. They're not just worrying. They are facing a real crisis as retirement gets closer.
Inflation and Social Security at the top
More than half see inflation as a direct threat. Fifty five percent say rising prices worry them most. Nearly the same share, 54 percent, doubt Social Security will provide enough income. This mix of higher costs and uncertain benefits drives up their anxiety.
They are really behind
A recent survey shows Gen X expects to need around 1.56 million dollars to retire comfortably. But their average savings sit at just 108,600 dollars. That leaves a 1.45 million dollar gap. With less time to catch up and no pensions to rely on, the pressure is building fast.
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Where Gen X falls short
The Gen X cohort faces three key pressure points that deepen their financial strain:
Less pension, more responsibility
Most Gen X missed out on traditional pensions. They entered the workforce when 401(k)s were new, without tools like auto-enrollment or financial guidance. That left them to navigate recessions and retirement planning on their own.The sandwich squeeze
They support both children and aging parents. Many provide money to family members and have had to cut retirement savings or take on more credit card debt to cope.Market timing risk
They’re close to retirement with less room for error. Even small market downturns now can wipe out years of savings growth and force them to delay retirement or reduce income later.
Financial reality vs feelings
Healthy behaviors, anxious minds
Gen Xers save and contribute more than Millennials or Gen Z. They’re less likely to tap retirement early. Yet only 25 percent feel satisfied with their finances compared to 44 percent of Boomers.Debt adds stress
Nearly 39 percent carry credit‑card debt, 33 percent have auto loans, and 26 percent hold medical debt. Thirty‑eight percent feel they have “too much debt.”
Root causes
They face three structural pressures that add constant stress:
Healthcare costs
Insurance premiums keep rising and many Gen Xers pay thousands in annual premiums with high deductibles. Long-term care is a looming burden: home care runs around US $78,000 per year and nursing homes can exceed US $128,000. These costs often catch them off guard since Medicare and employer plans don’t cover non-medical insurance like in-home assistance or assisted living.
Economic shocks
They came of age during the dot-com crash and the September 11 attacks, lost more than half their home equity during the 2008 Great Recession, and then faced job and market disruptions during COVID‑19. Those setbacks happened during critical earning years and robbed them of key saving opportunities .
Eroding Social Security and Medicare trust
The oldest Gen Xers will reach Social Security eligibility between 2033 and 2036. That’s when trust funds may be depleted and payouts likely reduced. At the same time, Medicare faces rising costs with fewer workers per retiree. The uncertainty around both programs undermines confidence in their retirement safety net
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What Gen X can do now
They have several powerful strategies to improve their financial outlook:
Maximize retirement contributions
Once you hit 50 years old the IRS lets you add extra—up to $7,500 dollars on top of regular limits for 401(k) plans and 1,000 dollars more for IRAs. Plus in 2025 some people aged 60 to 63 can add even more bringing total contributions to over $30,000 dollars per year. Even increasing your contribution by just one percent can significantly boost growth through compounding over time.Pay down high interest debt
Focus on clearing credit cards and then student loans. Credit cards often carry double digit interest rates which erode your progress. Every dollar paid off now frees up more money for saving and investing later.Boost income
Look for pay raises or take on side income. Consider part time work with benefits like health coverage. Employers such as Costco or Starbucks often offer such perks which can ease healthcare cost concerns while adding to your retirement fund.Delay Social Security
Waiting until age 70 can raise your monthly benefit by roughly 8 percent per year beyond full retirement age. That is a low risk guaranteed boost that compounds over time making it one of the few sure returns available.Manage investment risk
As retirement nears, protect your savings from sharp market swings. Consider changing your portfolio allocation to reduce volatility while still offering some growth.Get professional advice
Only around 40 percent of Gen Xers work with financial planners. A certified planner can help create a roadmap choosing when to take Social Security, how much risk to take and which products meet your goals.
Quick action steps
Start taking control today with these five proven moves that planners say can boost your confidence and inch you closer to a secure retirement. Let’s break them down:
Bottom Line
Gen Xers have faced real challenges over the years. They work hard, save more than younger generations, and manage debt better. Even if they feel behind, their actions show how resourceful they are. They save consistently, adjust investment strategies, tackle debt head on, and adapt to changing norms.
Time isn’t on their side, but it’s not too late. With steady saving, smarter investing, debt control, and healthcare planning, they can still build a comfortable retirement. It is crunch time, but still doable. Small consistent moves today ease tomorrow’s worries. Gen X can win this.
Download your free guide to mastering taxes in retirement today!
Reference
Business Insider. (2024, April 4). Gen Xers think they’ll need $1.56 million to retire comfortably [Northwestern Mutual survey]. Retrieved from https://www.businessinsider.com/how-much-money-do-i-need-for-retirement-gen-x-2024-4#:~:text=A%20Northwestern%20Mutual%20survey%20found,each%20cohort%20actually%20has%20saved
Investopedia. (2025, May 21). Gen X fears running out of money more than death—Here’s how to combat that fear. Retrieved from https://www.investopedia.com/gen-x-fears-running-out-of-money-more-than-death-11723770
FINRA Investor Education Foundation. (2024, October). How Gen X compares financially to other generations: Doing alright but feeling bad [PDF]. Retrieved from https://www.finrafoundation.org/sites/finrafoundation/files/2024-10/how-gen-x-compares-financially-to-other-generations-oct2024.pdf
MarketWatch. (2025). This is Generation X’s biggest retirement worry — and it’s not money. Retrieved from https://www.marketwatch.com/story/this-is-generation-xs-biggest-retirement-worry-and-its-not-money-7861035a
