With retirement approaching, many Gen Xers are still trying to catch up.

• Despite approaching retirement sooner, Generation X feels less prepared than other generations.
• Almost half of Gen Xers, specifically 48%, admit they won't have sufficient funds to enjoy their retirement.
• Many Gen X individuals are part of the "sandwich generation," which involves caring for both elderly parents and adult children financially.

With age, members of Generation X are facing the pressure of retirement saving, particularly those who must also manage the financial responsibilities of caring for both elderly parents and adult children.

According to a 2024 report from Natixis Investment Managers, about half of Gen Xers believe they won't have enough money to enjoy their retirement. Additionally, 31% of those surveyed express fear that they will never be able to save enough to retire.

Individuals born between 1965 and 1980 are classified as Gen X. Although their retirement is still several years away, they are already contemplating their living arrangements for their golden years, which may span into their 90s.

"Marguerita Cheng, a certified financial planner and Gen X mother, stated that being caught in the tug of war between saving for retirement and helping aging parents is very stressful for Gen X. Even if they don't have aging parents, Gen X still faces a tug of war between retirement savings and helping their kids with education."

The first generation of U.S. workers to grow up with 401(k) plans as their primary retirement savings option was Gen X, as employers mostly moved away from traditional pensions in the 1980s.

Financial planners suggest that Gen X can still optimize their savings as retirement nears, despite feeling financial pressure.

According to CFP Preston D. Cherry, founder and president of Concurrent Financial Planning, Generation X is being used as a test group for the 401(k) plan.

Both Cheng, CEO of Blue Ocean Global Wealth, and Cherry are part of the CNBC Financial Advisor Council.

In March and April 2023, CoreData Research conducted a survey with 8,550 individual investors from 23 countries.

The 'forgotten' generation

In the 1970s, Gen Xers witnessed political upheaval and societal transformation, and upon entering the workforce, they lacked the job security that their parents had with pensions, according to Cheng.

"We are irreverent, independent, and a bit skeptical, just like latchkey kids," she said. "Gen X is often overlooked, as if they are the middle child, with no respect. People focus on millennials and boomers, but Gen X is the forgotten generation."

Cherry stated that as Gen Xers started thinking about retirement planning, they encountered 401(k) choices regarding investment amounts and types that their boomer parents never had to contemplate.

"Cherry stated that they must make continuous choices about their 401(k) contributions, which is why automatic enrollment was introduced to address the long-standing issue of under-allocation."

According to research from the Transamerica Institute, the median age at which Gen X workers started saving for retirement is 30, which is significantly older than the generations that followed.

A recent report from the Allianz Life Insurance Company of North America found that more than half of Gen Xers, or 55%, wish they saved more for retirement. The report was based on a survey of 1,000 respondents conducted between March and April 2024. According to the report, day-to-day necessities, credit card debt, and housing debt prevented 55% of respondents from saving more for retirement.

Many members of Gen X, often referred to as the "sandwich generation," were tasked with caring for their elderly parents and funding their children's college education as they aged.

Nearly half of the generation anticipates living frugally in retirement due to the toll on their financial freedom, according to the Natixis report.

'Retirement savings rates determine retirement dates'

To make the most of their peak earning years, Gen X should contribute to tax-advantaged accounts like 401(k) plans and individual retirement accounts, as advised by Cherry.

Individuals who are 50 or older at the end of the calendar year may be eligible to make annual catch-up contributions of up to $7,500 in 2023 and 2024 to their 401(k) plans.

Saving more of one's income towards retirement can enable an earlier retirement, according to Cherry.

"Retirement savings rates determine retirement dates," he said.

Although Gen Xers may not have a lot of extra money to devote to savings, advisors suggest that it's not too late to start saving and maximize existing savings accounts.

Cherry advised Gen Xers to consider delaying the claim of Social Security until age 70 to increase their monthly benefits and also suggested working past the typical retirement age of 65 if they are capable.