Generation X is next in line to retire after boomers, and some have already begun. However, more than half of Gen Xers (52%) don’t feel prepared for retirement, according to a recent Northwestern Mutual study.
Though it’s tempting to try and land on a number that will equal security in retirement, according to Herman Thompson Jr., a CFP with Innovative Financial Group, there is not a specific round dollar amount that is one-size-fits-all for retirement.
“I often tell clients that there is no such thing as average, and if there was, you wouldn’t want to be that,” Thompson said. “The only way to truly know if you are prepared for retirement is to seek out a Certified Financial Planner and actually do the work to create a financial plan.”
While the most important thing to prepare for retirement is “to save early and often,” according to Tom Buckingham, chief growth officer at Nassau Financial Group, it’s never too late to start.
Set aside what you can for retirement and be sure to take advantage of your company’s retirement plan match if there is one.
If you’re toying with the idea of taking Social Security benefits before the full retirement age of 70, Buckingham suggested there are significant benefits to starting retirement benefits as late as possible if you are in reasonably good health.
He said, “You will receive a higher benefit, potentially 50% to 75% higher if you wait until age 70 versus your early 60s, and that will provide more financial security if you live into your late 80s or 90s.”
If you have other assets, you could leverage those to supplement your income in your 60s, Buckingham said. Fixed annuities and other investments can provide guaranteed income over a fixed period of time or for the rest of your life.
Additionally, if necessary, you could consider a reverse mortgage or sell a home to free up liquid cash.
The most useful tool for preparing for retirement is your 401(k), Thompson said.
“If a Gen Xer is feeling unprepared for retirement, the generally easiest step is to make sure a piece of each paycheck is going directly into a retirement account,” he said. “The best time to start funding your 401(k) was yesterday, but since that is not an option, do it immediately.”
For Gen Xers nearing retirement and feeling unprepared, the focus should shift from catching up to creating resilience in their financial plan, according to Stephen Greet, co-founder of BeamJobs.
“At this stage,” he said, “it’s less about perfecting every detail and more about optimizing what you have and ensuring your choices align with your personal goals.”
Instead of focusing solely on a dollar figure, Beams suggested that what’s important at this stage is for Gen Xers to get “clarity and control over your financial ecosystem.”
Beams said this includes understanding fixed-income streams such as Social Security, pensions or rental income; minimizing debt, and ensuring your assets are liquid and accessible.
“It’s not just about numbers,” he said. “It’s about confidence in navigating your retirement years without financial surprises derailing your plans.”
Retirement doesn’t have to be all-or-nothing, Beams said. In fact, he pointed out that many Gen Xers are exploring phased retirement, which blends part-time work with the leisure of retirement.
“This approach extends earning potential while allowing savings to continue compounding,” Beams said. “It’s a strategy that also keeps people engaged socially and intellectually — factors often overlooked in financial plans.”
Instead of chasing a specific retirement savings target, prioritize creating a sustainable cash flow, Beams said. This includes asking, “How much income do you need monthly, and what sources can reliably provide it?” he said. “This shift in perspective empowers decision-making that feels actionable, not overwhelming.”
Healthcare costs can erode retirement savings faster than any market downturn, Beams pointed out. Thus, allocating resources to preventive care and lifestyle adjustments now — like fitness or nutrition coaching — pays dividends in reduced healthcare expenses later.
“This is a critical, often ignored, component of retirement preparedness,” he said.
Time is the biggest challenge, but it’s not insurmountable, Beams said.
“For individuals with little in savings, I often suggest exploring nontraditional income strategies like renting out unused property or monetizing skills through gig work,” he said. “These options provide immediate financial relief without requiring dramatic lifestyle changes.”
Being prepared isn’t about achieving perfection but about building a sustainable, flexible plan that provides peace of mind, Beams said.
“It’s not too late to take control — and that’s a powerful realization for anyone on the cusp of retirement.”
