Gen X are being ignored by retirement benefits, too

As the oldest members of Generation X turn 60 this year, new research reveals a troubling reality: More than half (54%) of this cohort doesn't believe they'll be financially ready for retirement. 

Northwestern Mutual's 2025 Planning and Progress Study paints a stark picture of Gen X's readiness, and underscores the critical role benefit managers can play in helping them course-correct. 

Gen X is the first generation to fully transition from pensions to defined contribution plans, placing far more responsibility for retirement savings on individuals. At the same time, many are juggling support for both aging parents and dependent children — the "sandwich generation" squeeze. 

"Many Gen X'ers 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 release. "All of this puts more of the burden of financial planning on their shoulders." 

Read more: For Gen X, reality bites when it comes to retirement

This financial strain shows up in Northwestern Mutual's data: While Gen Xers say they'll need $1.57 million to retire comfortably, many report saving only about twice their annual income. Half acknowledge a significant blind spot in their planning, admitting they've focused too much on growing assets without adequately protecting them. 

Compared to boomers, Gen Xers also report less clarity about how inflation, taxes, healthcare costs and market volatility could affect their retirement. Nearly half even expect to keep working later in life, with most saying it will be out of financial necessity rather than choice.

Gen X plagued by financial anxiety

For many in this generation, financial anxiety is a constant companion. Thirty-five percent say they lose sleep over money at least once a month — a rate far higher than older generations. Gen Xers are the most likely to worry about outliving their savings, and the least likely to believe they will leave an inheritance. Nearly half also question whether Social Security will be available when they retire, a concern that rivals the perennial question of how much money they'll need to retire comfortably.

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Despite these concerns, just one-third of Gen Xers currently work with a financial adviser, compared to 43% of boomers. That gap creates a clear opportunity for benefit leaders to step in with meaningful support. Expanding financial wellness programs that speak directly to the challenges of mid-career employees can help, especially as they balance multiple financial priorities. 

"A comprehensive financial plan custom-built by a trusted advisor can make a real impact," Sippel said in the release. "It can help Gen X'ers get clarity on what they need as they head toward their retirement years and put a realistic gameplan in place to get there." 

Employers can also emphasize asset protection strategies through insurance offerings, emergency savings programs and long-term care planning. Finally, facilitating access to professional financial guidance — whether through workplace advisers or counselor partnerships — can provide Gen Xers the structure they need to turn uncertainty into action.

"Growth without protection can leave people vulnerable," said Sippel. "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."