The Financial Challenges Facing Gen X as Retirement Approaches

The first 401(k) generation, also known as Generation X, is rapidly approaching the traditional retirement age of 65, but surveys show that they are feeling increasingly unprepared for this next phase of life. According to various studies, Gen X is the least confident age group in the U.S. when it comes to their retirement savings, with only around 60% feeling on track compared to 68% of baby boomers and 77% of Gen Z.

Research from BlackRock’s Read on Retirement survey reveals that Gen Xers are struggling financially, with median savings far below recommended levels. For example, a Prudential survey found that the typical Gen X household has just $40,000 in retirement savings, well below the recommended $446,565 by age 55.

Financial experts attribute this lack of savings to the shift from company-funded pensions to individual responsibility for retirement savings, a change that Gen X was the first to experience. Despite feeling unprepared, Gen X is the most likely to be saving consistently, with 80% reporting that they are doing so.

As the oldest Gen Xers reach the milestone age of 59 and a half, financial advisors recommend taking advantage of catch-up contributions to boost their retirement savings. Additionally, Gen X is poised to benefit from the Great Wealth Transfer, where trillions of dollars will be passed down from baby boomers to their heirs in the coming years.

While Gen X may be facing financial challenges as they near retirement age, there are strategies and opportunities available to help them secure their financial future. Subscribe to the Fortune Next to Lead newsletter for weekly tips on navigating the road to retirement.