Just 31% of Gen X Is Confident About Retirement — What's Concerning the Rest?
Members of Gen X are nearing retirement, but many are feeling increasingly uncertain about their financial futures. According to a new report from Betterment, overall retirement confidence among Americans fell from 56% in 2025 to 44% in 2026. Among Gen X, confidence is even lower, with just 31% saying they feel prepared for retirement — the lowest rate of any generation.
Here's a closer look at what's driving the decline in confidence and what Gen X can do to feel more secure about retirement.
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Why Gen X Feels Less Prepared for Retirement Than Other Generations
There are several factors that may be contributing to Gen X's low retirement confidence.
"Gen X has experienced several tumultuous economic events in their adult lives — the 2008 financial crisis, the pandemic, etc. — that may have been roadblocks in their retirement savings progress," said Kyle McBrien, certified financial planner and senior financial planner at Betterment. "Even if they are technically 'on track,' the financial anxiety and mistrust in the markets that these events created sticks with them."
Many Gen Xers are also part of the "sandwich generation," balancing the financial demands of supporting both aging parents and children.
"Between the fact that older adults are living longer and it being more common for Gen Z and millennials to rely financially on their parents well into adulthood, Gen Xers may find themselves financially strained in both directions," McBrien said.
These competing responsibilities can make it harder to prioritize retirement savings, even for those who have been planning for years.
Retirement Confidence Is Falling Across America
Gen X isn't alone in feeling uneasy about retirement. The Betterment report found that confidence declined across all generations over the past year.
One reason is growing uncertainty about the economy and financial markets.
"People feel uncertain about the way the market will move based on a variety of sociopolitical factors," McBrien said. "High costs of living and inflation also make it easy to get fatigued while planning for retirement."
Social media may also be contributing to the problem. Constant exposure to posts about investment success or early retirement can make it easy for people to compare themselves to others, even when those comparisons aren't realistic.
"There are endless amounts of personal finance content on social media, with 'FinTok' influencers making huge claims about how they saved XYZ amount for retirement by a young age," McBrien said. "People may be more ready for retirement than they realize, but are making comparisons between themselves and others that ignore all kinds of financial factors at play."
Rather than focusing on how others appear to be doing financially, McBrien recommended concentrating on your own goals and retirement strategy.
"It is critical to make a retirement plan that works for you as an individual using a financial planner and/or well-vetted resources, and drowning out other information that is not helpful," he said.
Inflation and Living Costs Are Making Retirement Harder To Afford
For Gen X, inflation and day-to-day expenses remain major obstacles to building retirement confidence. The report found that inflation (15%) and household costs (14%) are the generation's top financial stressors.
"With inflation and household costs on the rise, it’s easy for Gen Xers to get discouraged by retirement planning," McBrien said. "Without a doubt, it's more difficult to purchase household essentials and stay afloat and out of debt in general."
Rising costs can also make it feel difficult to balance retirement savings with enjoying life in the present.
"What once were small luxuries that made tiny, recoverable dents in the monthly budget now are significant financial burdens," McBrien said. "Because of this, it can feel like saving for retirement is an all-or-nothing task; either you commit a huge portion of each paycheck to it and don’t enjoy any of your working years, or you have an enjoyable life, send your kids to college, travel, etc., and resign yourself to working forever."
While many households face real financial pressures, retirement planning doesn't have to be an all-or-nothing decision. Even small, consistent progress can help improve long-term outcomes.
How Gen X Can Improve Retirement Readiness and Confidence
While the challenges facing Gen X are significant, McBrien said many people may be in a better position than they realize.
"Overall, focusing on creating and nurturing a long-term plan and sticking to it is the best way to ensure financial confidence," he said. "The world is moving fast, and while it’s important to be adaptable to changing economic conditions, don’t catastrophize and change everything about your financial plan based on today’s headlines."
One finding from the report suggested that having the right tools can make a meaningful difference. Sixty-eight percent of investors who use a digital investment platform reported retirement confidence, compared with 39% among those who do not.
McBrien recommended working with a trusted financial planner, taking advantage of any employer retirement-plan match, and building a financial plan that is realistic and sustainable.
"Constantly stressing, feeling guilty over spending money on legitimate needs, and running a mental calculator of retirement readiness will only lead to burnout and discouragement," McBrien said. "Control the controllable, and try to avoid stressing over factors you have no way to predict or change."
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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