"Gen X investors have shouldered the impact of major economic events, from the dot-com crash in 2000 to the Great Recession in 2008, while also entering the workforce just as pensions were being phased out, leaving them responsible for building their own retirement savings," said Craig Hawley, president of Nationwide Annuity. "Though these experiences have built resilience, many now face the added financial strain of supporting both aging parents and children. For those Gen Xers struggling financially, it’s not too late to get back on track—with the right long-term plan developed alongside a trusted financial professional."

Gen Xers are taking proactive steps to prepare for potential near-term volatility. “While it’s understandable that Gen X investors are less optimistic about their financial outlook, their life experience has also made them more pragmatic,” said Hawley.

Gen Xers are increasingly turning to experts for financial guidance, with nearly four in 10 (37%) currently paying for advisor services, up from 29% just six months ago. Additionally, 21% believe a financial professional helps them stay focused on long-term goals, and 32% of Gen Xers with an advisor frequently discuss retirement readiness.

Advisors are providing tailored tools and strategies for managing family-related expenses in retirement. Over four in ten (42%) of advisors whose clients support their children and/or aging parents are utilizing tax deductions and credits to help manage the financial pressures of familial expenses in retirement, while 36% suggest long-term care insurance for aging parents. Nearly the same share (35%) are helping clients prioritize retirement savings over other expenses, often using retirement investment vehicles like annuities (82%) to safeguard assets from market risks.

"Gen Xers are at an age where the financial decisions they make can carry massive implications for their retirement security,” said Hawley. “Financial professionals can help this group create a holistic plan for addressing factors like long-term care, taxes and income in retirement. Good advisors can identify gaps and create plans to help clients address them before it’s too late.” 
More than a third (37%) of Gen Xers currently pay for advisor services, up from just 29% six months ago, and 32% of Gen Xers with an advisor frequently discuss retirement readiness.

Hawley shares more insights below into the financial impacts shouldered by Gen Xers, and how financial professionals are supporting their Gen X clients through unique financial headwinds.

Q: What are the unique financial circumstances shouldered by Gen Xers?

A: Gen X investors are in a unique situation, preparing for an impending retirement while dealing with the pressure of supporting both children and aging parents – circumstances that are weighing more heavily on them than other generations. For example, while 23% of Gen Xers told us they stopped or decreased retirement savings due to supporting children and / or aging parents, only 19% of baby boomers, 16% of millennials and 11% of Gen Zers said the same.

Additionally, 20% of Gen Xers said they have not been able to save for retirement, compared to only 11% of baby boomers and millennials and 12% of Gen Zers. Even more concerning, more than half (57%) of Gen Xers said they feel they are less financially equipped to have a stable retirement than their parents were at their age, an issue compounded by the dual caregiving roles some of them are finding themselves in now. 
 

Q. Why are more Gen Xers paying for advisor services?

A: Gen X investors have lived through multiple economic events, including the dot-com bubble crash of 2000, the 2008 Great Recession and the more recent COVID-19 pandemic. Many of them entered the workforce just as pensions were being phased out, leaving them responsible for building their own retirement savings. These events have had a lasting impact on them, causing them to take proactive, pragmatic steps to prepare for retirement amidst the economic, financial and social stresses they are currently facing. Gen Xers told us they believe one of the most important benefits of working with a financial professional is helping them stay focused on long-term goals, so it’s not surprising to see more of them turning to advisors for help as they prepare for their future retirement. 
 

Q. How can employers help Gen Xers to save more money for retirement?

A: The majority (68%) of today’s Gen X investors agree that the norm of retiring at 65 doesn’t apply to them. In fact, 38% said they would continue working in retirement to supplement their income and one in three plan to live frugally to fund their retirement goals. With employers focused on attracting and retaining employees in today’s labor market, this presents an opportunity to improve retirement plan offerings. 

Related: Gen X reports ‘lowest’ financial health, but they can ‘catch up’ on retirement savings in 2025

Q: Are Gen Xers expecting to retire later than expected?

A: Nationwide’s Advisor Authority study found 46% of Gen X investors expect to retire at age 66 or later vs the median age of 62 (according to EBRI). I think it’s normal for investors – especially Gen X investors – to feel like retirement may be delayed due to the multiple stresses they are facing. However, another Nationwide study from earlier this year actually found that 64% of current retirees stopped working earlier than they planned. In that survey, the average age retirees said they retired was 60, while the average age of expected retirement for pre-retirees was 67.

There’s many different reasons people may retire earlier than expected, including health challenges or ageism, but we may also be seeing some retiring earlier due to better employer offerings, healthcare options in retirement and good financial planning. It’s just another reason why working with an advisor to develop a holistic long-term plan is important because you may be facing retirement earlier than you think – and you want to be ready for it.