Gen Xers are the least confident that they’ll reach their retirement goals — what’s holding them back?

Generation X — the now middle-aged former latchkey kids who spent much of their childhoods unsupervised in front of MTV — are known for their independence, resourcefulness and pessimism.

That pessimism, it seems, extends to retirement. Of all generations, Gen Xers (those born between 1965-1980) are the least likely to feel confident they’ll reach their retirement goals, with only 43% saying so, according to PNC Bank’s Financial Wellness in the Workplace Report [1].

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While 50% of boomers and millennials are confident they’ll reach their desired retirement, Gen Z is the most confident at 56%.

“I believe so few Gen Xers feel confident about retirement because they are carrying the heaviest load right now. They’re paying mortgages, putting kids through college, and in many cases helping aging parents,” Karla Dennis, CEO of tax planning firm KDA Inc., told Newsweek [2].

Many people from the generation dubbed “slackers” perhaps deserve some slack: They are struggling with inflation, as well as high housing and health-care costs, largely without workplace retirement plans to fall back on. Few Gen Xers (just 14%) have a defined benefit plan, according to the National Institute on Retirement Security, and only 55% participate in employer-sponsored retirement savings plans [3].

Gen Xers are also worried about the future viability of Social Security. If nothing changes, the trust fund reserves that pay out Social Security are projected to become insolvent by 2035, meaning retirees would only receive 83% of their benefit, unless Congress takes action before then [4].

3 big challenges for Gen Xers: kids, parents and mortgages

While it may not seem like it, Americans have 63% more purchasing power than they did back in 1973, as measured by the Consumer Price Index, according to an analysis from ConsumerAffairs.

“On paper, today’s dollar goes further, allowing more room for nonessential spending,” the analysis says.

So why are so many of us feeling the pinch, when we think we should be on a firm financial footing by now? It’s that the costs of housing and college tuition — major expenses for Gen Xers — have skyrocketed, tempering the impact of purchasing-power gains.

The cost of a home has risen about 1,045% since 1973 [5]. A third of Americans aged 44-59 are carrying a mortgage, according to a study by Experian. And, of all generations, Gen Xers pay the most — with an average monthly payment of $2,313 — even though the younger millennials have higher average mortgage balances.

“Household size explains part of this: Gen X families are more likely to have children, and less likely to be single-person households, than younger homeowners, so their properties will have larger footprints,” the Experian report says [6].

Meanwhile, even accounting for inflation, tuition has increased by 177% (for public college tuition) and 158% (for private college tuition) since the 70s [5] — a major strain on parents of college-aged kids.

And some are paying tuition for two generations: Gen Xers who are still paying their own student loans also have the highest average balance ($44,240) of any age group, according to the Education Data Initiative [7].

Gen X is solidly middle-aged, and they’re constantly caught in the middle: They’re paying off student debt, while also helping to put their own children through school. Many are looking after kids, and almost one in four (22%) are also financially supporting at least one parent or parent-in-law, according to a survey from LendingTree.

That responsibility has put many in the MTV generation into a financial hole: More than half (58%) of Americans who are supporting aging parents have gone into debt doing so [8].

Given the costs of covering a mortgage while supporting college-age kids and aging parents, it’s no wonder that members of Gen X are thinking about their retirement goals with their trademark pessimism. But it doesn’t have to be this way.

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How to better manage these expenses

With so many pressures, what can Gen Xers do to ease the sandwich-generation squeeze and meet their retirement savings goals?

To make the retirement math work, some Gen Xers will need to look for additional sources of income. According to a Nasdaq article, Gen X came of age when job-hopping was less commonplace than it is now, which is why they might be earning the same amount as their much younger counterparts. Asking for a raise or moving to a new company could help boost their overall income [9].

For those with caregiving responsibilities, finding time to take on a side gig could prove challenging. But consider finding an activity, like dog sitting, that’s both enjoyable and flexible. Another option is to look for sources of passive income, such as renting out a basement suite.

To find room in your budget, many financial experts recommend paying down high-interest debt like credit cards first. While that’s easier said than done, you could try negotiating with your card issuer for a lower interest rate or switching to a 0% balance transfer card.

It’s also important to put some money aside in an emergency fund, particularly if you’re caring for loved ones who will face more costs as they age. Make those savings work for you in a high-yield savings account.

From there, you can amp up your retirement savings. Start by maxing out any employer-sponsored retirement savings accounts — particularly if your employer matches your contributions.

If you’re 50+, you can also make catch-up contributions to your individual retirement account (IRA). For example, you can contribute an additional $1,000 in 2025 to the $7,000 annual limit, for a total of $8,000. You can also contribute an additional $7,500 to your 401(k), beyond the $23,500 annual limit, for a total of $31,000 [10].

Then it’s time to think about taxes. Traditional IRAs offer a tax deduction, reducing your taxable income for the year, which could be a smart move if you are advanced in your career and have a relatively high annual income. You’re taxed on withdrawals in retirement, when your annual income is much lower.

With a Roth IRA, you’ve already paid the taxes, so in retirement you won’t owe taxes on withdrawals — and contributions and earnings grow tax-free.

Finally, a diversified portfolio of stocks, bonds and alternative investments may provide a higher return over the long term. It could be worth speaking with your financial advisor about adjusting your investment strategy if you’re worried about meeting your retirement timeline.

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[1]. PNC Bank. “2025 Financial Wellness in the Workplace Report”

[2]. Newsweek. “Gen X Are Most Worried About Retirement Goals”

[3]. National Institute on Retirement Security. “New Report Finds Alarming Retirement Outlook for Generation X”

[4]. CNBC. “Will Social Security run out? Here’s what could happen to your benefits”

[5]. ConsumerAffairs. “Comparing the costs of generations”

[6]. Experian. “Gen X, Millennials Pay More for Their Mortgages”

[7]. Education Data Initiative. “Student Loan Debt by Generation”

[8]. LendingTree. “Nearly Half of Americans Financially Support Aging Parents or Expect to”

[9]. Nasdaq. “6 Reasons Gen X Is Not Making Enough Money To Pay Debts”

[10]. IRS. “401(k) limit increases to $23,500 for 2025, IRA limit remains $7,000”

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.