The oldest Gen Xers turn 60 this year, and many find themselves nearing retirement with deep uncertainties about the state of their finances, according to the latest findings from Northwestern Mutual’s 2025 Planning & Progress Study.
Fifty-four percent of this generation think that they will not be financially prepared to leave the workforce when the time comes. They also expect to need $1.57 million to retire comfortably, $310,000 more than the “magic number” national average that Northwestern Mutual identified in a previous study.
When Gen Xers in the study who have saved money for retirement were asked how much they have saved as a multiple of their current annual income, the No. 1 answer was twice as much.
Fifty-six percent of Gen Xers said it is likely they will outlive their savings, compared with 40% of baby boomers and older study participants. Not surprisingly, Gen Xers are the generation that expresses the most concern about being able to afford retirement and also the one least likely to say they expect to leave an inheritance.
“Many Gen Xers are juggling responsibilities on both ends, supporting aging parents while still helping their children,” Jeff Sippel, chief strategy officer at Northwestern Mutual, said in a statement. “They’re also the first generation to truly feel the impact of the move from defined benefit plans to defined contribution plans. All of this puts more of the burden of financial planning on their shoulders.”
Sippel said a comprehensive financial plan custom-built by a trusted advisor can help provide clarity on what they need as they head toward their retirement years and put a realistic plan in place to get there.
The Harris Poll conducted the 2025 Planning & Progress Study online in January among 4,626 U.S. adults.
Eking Out Retirement Existence
Gen Xers have significantly less clarity than their older counterparts on a range of issues in their financial lives, the research shows, including how inflation and taxes could influence retirement, strategies to address health care and long-term care needs.
Half of Gen Xers in the survey said they have had a financial blind spot when managing their finances; they have overemphasized building wealth and not dedicated enough to protecting their assets. Only 35% of boomers said the same thing.
“Growth without protection can leave people vulnerable,” Sippel said. “Especially as you get older, safeguarding what you’ve built is just as critical as continuing to build. A holistic plan should account for both.”
Call in the Advisors
Thirty-five percent of Gen Xers said uncertainty about finances keeps them up at night at least once a month but affects only 14% of boomers in the same way.
Roughly half of Gen Xers wonder whether Social Security will be there for them when they qualify for it. That question runs neck and neck with how much they will need to retire comfortably.
Despite their anxiety around these issues, Gen Xers are less likely than older respondents to have sought professional help for their finances, the study found.
Forty-eight percent of Gen Xers said they plan to continue working during their retirement years, or already are doing so, compared with 30% of boomers.
Most Gen Xers who are working or plan to work in retirement said they will continue to do so out of necessity so they can afford retirement. A third said they will work part time at a different job and a quarter full time at a different job.
Gen Xers’ concern about Social Security clearly stands apart from how millennials and boomers think about it, Northwestern Mutual said. The research also shows that Gen Xers trail boomers and older people across a range of health, wealth and wellness issues.
“A financial advisor can bring structure and strategy to what otherwise might feel overwhelming,” Sippel said. “For Gen X, who are navigating a complex mix of responsibilities and goals, that kind of support can make the difference between feeling lost and feeling empowered.”
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