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Generation X, aged between 43 and 58, faces a significant retirement crisis. They are on the brink of retirement but largely unprepared financially. Studies reveal a substantial wealth gap within this generation, with most individuals having far less saved for retirement than what they estimate they’ll need.

Reports suggest that Gen X has the largest wealth gap compared to any other generation. On average, they believe they’ll need around $1.1 million for retirement but only have approximately $660,000 saved. The disparity is drastic, with the top earners having significantly more saved compared to the bottom quartile, where some have almost nothing put away for retirement.

This generation’s reliance on 401(k) plans instead of pensions adds to the challenge, with only a small fraction having a pension. They face increased financial pressure due to student loan debt, higher healthcare costs, and the responsibility of managing their retirement without the safety net of traditional pensions.

Moreover, despite having some time left until retirement, only around half of Gen Xers are actively contributing to workplace retirement plans. This statistic might be challenging to improve given the rising cost of living and various financial pressures they face, including caregiving responsibilities for both children and elderly relatives.

While there’s still time for many in this generation to start saving and benefit from compound interest, significant changes in behavior and financial planning are necessary to avert what could potentially become a retirement nightmare for a considerable portion of Generation X.


Gen X has the largest wealth gap of any generation, and it means ‘the American Dream of retirement is going to be a nightmare’ for them (

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