Gen Xers Are Facing Challenges As They Get Ready for Retirement

Gen Xers were born between 1965 and 1980, which means they are between 45 and 60 years old. For some of the oldest members of this generation, retirement is right around the corner. Even for the youngest, there are around two decades or so until they leave the workforce, give or take a few years.

It's a critical time in Gen Xers' efforts to achieve retirement readiness. Unfortunately, a recent study from Allianz Life Insurance shows that members of this generation are facing some big struggles when they should be in their prime saving and investing years.

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Gen Xers are facing these retirement challenges

According to the Allianz Life Insurance research, which was released at the end of September 2025, just 19% of Gen Xers think that it's a good time to invest in the stock market right now. Plus, 54% are concerned that another market crash is coming soon.

Fear of investing in the stock market is bad news for Gen Xers who are in the thick of the retirement planning process. It's critical to have exposure to equities -- especially for the younger members of this generation, who are still decades away from retirement and who need to take full advantage of the power of compound growth to build wealth.

Unfortunately, even if Gen Xers aren't too scared to invest, they may not have as much money as they'd like to do so. In total, 70% said that ongoing inflation had made it harder for them to contribute to their savings. This isn't surprising, as inflation has surged well above the 2% target rate in the post-pandemic era, leaving many people struggling to cope with rising costs.

Still, while Gen Xers are undoubtedly facing challenges, they'll need to find a way to grow their retirement plans and build the secure future they deserve. After all, you can't live comfortably on Social Security alone, given that these benefits only replace around 40% of pre-retirement funds.

How can Gen Xers overcome these retirement saving challenges?

What can Gen Xers do about the issues affecting their retirement readiness?

First and foremost, while many people within this age range are worried about investing due to their fear of an impending market crash, Gen Xers (and others) should put at least some of their money into equities despite this concern.

No one can accurately predict when a market crash will come, and you don't need to in order to be a successful investor. Instead, you should invest consistently over time in accounts like a 401(k) or IRA, or other tax-advantaged or even taxable brokerage accounts.

If you invest consistently and buy assets you feel confident you can hold for the long term, you'll set yourself up for success. Even if you buy right before a crash, as long as you don't panic sell, recovery will eventually follow. You can also use the time period when the market has crashed and good stocks are on sale to buy low and bulk up your portfolio.

As far as Gen Xers not feeling like they have enough money to invest, this can be a harder problem to overcome. Of course, increasing income is one option to deal with this situation, and cutting spending is another.

If you monitor spending using an app or even write down your transactions and enter them into a spreadsheet, you can identify areas where cuts are possible to free up cash for investing.

Taking advantage of employer matches and tax breaks in accounts like 401(k)s and IRAs can help, as can banking your raises. This means diverting the money to savings as soon as you get a salary bump before you get used to having more money.

The challenges Gen Xers face are real, but these tips can hopefully help members of this generation deal with their struggles and still build the secure future they deserve.

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