Gen X Turns to 'Retiring Backwards' as $460,000 Savings Gap Squeezes Retirement Plans
Updated
Updated · Fortune · Jul 31
Gen X Turns to 'Retiring Backwards' as $460,000 Savings Gap Squeezes Retirement Plans
2 articles · Updated · Fortune · Jul 31
Summary
Gen X is reshaping retirement around cheaper, familiar hobbies from youth—bands, skateboards, film cameras—because many cannot afford the aspirational retirement model embraced by baby boomers.
A savings shortfall exceeding $460,000 is driving that shift: Schroders found Gen X expects to need about $1.1 million but projects far less, while Northwestern Mutual put the target even higher at $1.57 million.
Pension access has also collapsed across the cohort, with only 14% covered versus more than 50% of baby boomers, leaving Gen X heavily reliant on self-directed 401(k)s and often without enough workplace-plan participation.
Family obligations deepen the strain: 56% of Gen X investors support both aging parents and adult children, 23% have cut or stopped retirement contributions, and 16% have tapped retirement accounts to cover costs.
The pattern underscores a broader wealth squeeze on a generation Fortune previously described as having the largest generational wealth gap, entering retirement with less security and less confidence than those before it.