As they inch closer to retirement age, Generation X, those born between 1965 and 1980, is increasingly surfacing in discussions of financial planning and retirement. Not too long ago, Gen X rarely came up as a demographic with a clearly defined profile. Case in point: The upcoming “Great Generational Wealth Transfer” typically focuses on the older Baby Boomers and their Millennial offspring, with Gen Xers largely out of the picture.

The in-between generation has defied scrutiny. That may be partly because the life stage of Gen X individuals, generally between the ages of 43 and 58, overlaps with the tail end of the Boomer generation on one side and older Millennials on the other. With children leaving the household and a decade or longer of work ahead, it’s time to bring Gen X front and center. Financial advisors must do more to fully address the financial planning needs of this generation: Prudential Financial’s 2024 Pulse of the American Retiree Survey revealed 55-year-olds have median retirement savings of less than $50,000, and one-third have already postponed retirement due to higher living costs. However, with 10 years left until they reach retirement age, there’s still an opportunity for this cohort to take steps and bolster their retirement savings now before they have far fewer options.

Overview of Gen X financial concerns and goals

Like other generational cohorts, and as they enter their prime earning years, Gen X must tackle retirement planning and wealth management. Retirement planning consistently emerges as the top priority for Gen X clients. The fundamental question they grapple with is whether they can afford to retire and what kind of lifestyle they can expect in retirement. This concern branches into two main variations: first, understanding the feasibility of retirement, and second, envisioning the quality of life they can sustain post-retirement.

Wealth management is a pain point for several reasons and solidifies the need for the guidance of a financial advisor. The complexity of today’s investment environment significantly influences Gen X’s apprehensions about managing their wealth. A myriad of investment options ranging from traditional stocks and bonds to cryptocurrencies and emerging industries like cannabis are difficult to understand without professional input. Gen X clients are interested in aligning their investments with their risk tolerance while also seeking opportunities for higher returns. They need an advisor to help guide them through these choices, ensuring their investment strategies are diversified and aligned with their long-term goals.

Gen Xers are cautious

Given the economic fluctuations they have experienced, particularly the 2008 financial crisis, many Gen Xers are keenly aware of the need to secure a stable financial future and avoid the pitfalls of previous economic downturns. This experience has instilled a cautious approach to financial planning. They are acutely aware of the potential for market volatility and the importance of having a robust financial plan. Debt reduction and cash flow management are critical aspects of financial planning for Gen X. Many are focused on paying off mortgages, and car loans, and managing any remaining student loans or educational expenses for their children.

Comparing Gen X financial goals with other generations

Gen X are the children of a generation that often had pensions and more predictable retirement benefits. They entered the workforce during a time of significant change in retirement planning. Our survey shows 55-year-olds are nearly twice as likely as 65- and 75-year-olds to rely on “do-it-yourself” employer plans like 401(k)s to fund retirement. Many Gen X individuals, left to fend for themselves, did not initially prioritize retirement savings in the same way that is now recommended and are scrambling to catch up.

A concerning trend, dubbed the “Rise of the Silver Squatters,” has emerged, according to the Prudential Survey. About 25% of this group anticipates needing financial support from their children or family, including housing. Yet, less than half have discussed this with their families. This situation is a reversal of roles, as Millennial and Gen Z adults who once relied on their Gen X parents for financial support may now find themselves supporting their parents.

Women in this age group are particularly vulnerable. The gender pay gap, the fact that two-thirds of caregivers are women, longer lifespans, and entering retirement with a third less savings than their male counterparts all contribute to this vulnerability.

Living better lives, longer

Gen X faces a distinct set of financial challenges and opportunities, but the upside is they have 10 to 20 years to turn things around. The right planning and strategy can help protect their life’s work, and help ensure this generation lives not only longer, but better. Gen Xers can enhance their retirement savings and more effectively ensure a steady income for life with modern financial tools surpassing pensions and Social Security, including annuities and income protection plans.

An advisor’s personalized attention to Gen X clients also should not be underestimated. Retirement is increasingly becoming a time of reinvention. Gen Xers are entering this phase healthier and more active than previous generations, opening up new possibilities for personal and professional growth. By understanding their experiences and preferences, advisors can provide valuable, tailored advice that helps them achieve their financial goals. Whether it's through retirement planning, wealth management, or debt reduction, the key is to build a relationship based on confidence, empathy, and personalized service.

Patrick Hynes is Head of Field Sales for Prudential Advisors and leads strategy for a group that includes roughly 3,000 financial professionals. Prudential Advisors is a brand name of The Prudential Insurance Company of America and its subsidiaries.