From Complexity to Clarity: How a Financial Advisor Can Help With Gen X Retirement

If you were born between 1965 and 1980, you’re part of Generation X—a group finding retirement planning more challenging than ever. 

Many Gen Xers realize that their savings might not be enough to support them in retirement, which can be incredibly stressful. You’re not alone in feeling worried about what the future holds. It's a tough spot to be in, but acknowledging these challenges is the first step toward overcoming them.

Working with a financial advisor can provide guidance and strategies for overcoming these challenges and achieving a more secure and comfortable retirement.

Facing the Reality: What Gen X Is Up Against

It’s tough out there for Gen X when it comes to retirement. Let’s break down the specific challenges this generation is dealing with as they try to prepare for their golden years.

1. Insufficient Savings

For many in Gen X, the savings just aren’t there. According to the National Institute on Retirement Security, the average Gen X household has only saved about $40,000 for retirement. That’s far less than what experts recommend for a secure future.

For those approaching 55, having less than $50,000 saved is particularly concerning, especially when retirement is just around the corner. This lack of savings means many Gen Xers may struggle to retire comfortably.

2. Financial Pressures from Multiple Directions

Gen Xers often find themselves squeezed between the financial demands of raising children and supporting aging parents. According to a recent Bankrate study, 69% of Gen X workers are falling behind on retirement savings.

With so many immediate needs, it’s no wonder that long-term goals like retirement planning take a back seat. This balancing act leaves little room to focus on building a solid retirement fund, which is crucial for ensuring financial security in later years.

3. Juggling Multiple Retirement Accounts

Many Gen Xers have worked at several companies, leading to multiple retirement accounts scattered across different providers. Keeping track of these accounts (including 401(k)s, IRAs, or other retirement plans), managing investments, and ensuring that all funds work efficiently can be overwhelming.

Without a clear strategy, it’s easy to lose sight of your retirement goals, leading to missed opportunities for growth and potential shortfalls in retirement savings.

4. Rising Costs and Economic Uncertainty

The cost of living has increased dramatically, especially in sectors such as healthcare and education. Inflation and market volatility further complicate Gen Xers’ ability to save effectively. 

Research shows that Gen X holds the majority of federal student debt, and many are now facing the high costs of supporting their children’s education. These increasing costs and economic instability present significant obstacles to saving and investing for retirement.

5. Longer Life Expectancies

Gen X is expected to live longer than previous generations, so they’ll need more substantial retirement savings to support themselves. However, many are not financially prepared for this extended retirement period. 

According to a recent KFF survey, 60% of adults aged 50 and older feel “mostly” or “somewhat anxious” about the expenses associated with nursing homes, assisted living facilities, or hiring paid nurses and aides for support during retirement. 

These numbers indicate a strong need for careful planning to ensure that retirement savings last throughout an extended retirement.

Getting the Right Help: How a Financial Advisor Can Make a Difference

Facing these financial challenges alone can be overwhelming. However, seeking support and guidance from a financial advisor who understands your needs can help you get your retirement plan on track. Here’s how:

1. Tailored Retirement Planning

A financial advisor can help you create a customized retirement plan that aligns with your unique financial situation and goals. They can develop a plan that maximizes savings and minimizes risks by evaluating your current savings, expected expenses, and retirement objectives. This personalized approach ensures that you’re on the right track to meeting your retirement goals, even if you start later than you’d like.

2. Consolidating Retirement Accounts

If you have multiple retirement accounts, a financial advisor can help you consolidate them, making it easier to manage your investments. This process simplifies your financial life and helps optimize your retirement assets’ growth potential. An advisor can ensure that your retirement funds work together efficiently, providing a clear path toward a secure retirement.

3. Balancing Financial Obligations

For those juggling the responsibilities of supporting parents and children, a financial advisor can help you prioritize your financial goals. They can assist in creating a plan that balances immediate needs with long-term retirement goals, ensuring that you don’t sacrifice your future for today’s obligations. An advisor can help you maintain financial stability without compromising retirement security by managing cash flow and optimizing savings.

4. Protecting Against Economic Uncertainty

A financial advisor can offer strategies to safeguard retirement savings from market volatility and inflation. This might involve creating a diversified investment portfolio, adjusting contributions during economic downturns, or exploring additional income sources. Advisors can also help you develop a flexible retirement plan that can adapt to changing economic conditions, ensuring your retirement goals remain achievable.

5. Planning for a Longer Retirement

With longer life expectancies, planning for a retirement that could last 30 years or more is essential. A financial advisor can help you prepare for healthcare costs, long-term care, and other expenses that may arise as you age. They can recommend financial products like long-term care insurance and adjust your savings strategies to ensure that your retirement income lasts throughout your lifetime.

The Aligned Perspective: How a Financial Advisor Can Help With Gen X Retirement

Gen X faces significant challenges regarding retirement planning, but it’s not too late to take action. Working with a financial advisor means you’ll receive tailored advice that addresses your unique needs and helps you build a secure retirement plan. Don’t wait—start taking steps today to ensure you can retire comfortably and enjoy peace of mind with financial security.

Simple, strategic, and designed to give you clarity as you grow.