The oldest Gen Xers — those born in 1965 — are turning 60 this year. Raised on mixtapes, MTV and a hefty dose of skepticism, this generation has long flown under the radar in the retirement planning conversation.
But now, with retirement on the horizon and economic uncertainty on the rise, it’s time to hit pause on nostalgia and start building a fresh financial “playlist” for the next 30 years.
This is about more than just investment accounts.
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Kiplinger’s Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.
It’s about preparing for living a long life, navigating complex family dynamics and making sure your money works as hard as you have.
Here’s a modern framework — track by track — to accompany Gen Xers into retirement.
1. Reality bites soundtrack: Answering the big questions
These are all the right questions — and they don’t have easy, one-size-fits-all answers. According to Northwestern Mutual’s Planning & Progress Study, more than half (54%) of Gen Xers believe they will not be financially prepared for retirement when the time comes.
It’s no wonder. Many are juggling aging parents who are living longer, adult children challenged by higher costs and their own dreams and goals — all while market volatility chips away at their confidence.
This is where a personalized and comprehensive financial plan is critical — one that factors in a mix of income sources, financial needs and investment risk tolerance while also protecting what you’ve built to date.
Talking to a financial adviser can help you look at your full financial picture and work out a strategy that is right for you.
2. Unexpected duets: The sandwich generation’s balancing act
Gen X is the classic “sandwich generation.” You may be helping fund a parent’s care while also supporting a child through college. Many of these adult kids have moved back in, and others never moved out in the first place.
That’s why your plan should include financial flexibility. For example, keeping a portion of your assets liquid — through savings, whole life insurance cash value, which is guaranteed to grow and can be accessed at any time, or accessible brokerage accounts — can help you respond to family needs without compromising your long-term goals.
Spousal IRAs are another overlooked tool that can help married couples build tax-advantaged savings, especially when one partner has stepped away from the workforce to provide care.
3. Greatest hits: Must-have financial moves
Certain decisions have an outsized impact on retirement success. Chief among them? When to take Social Security, how to handle health care expenses and how to turn savings into a steady income.
Claiming Social Security early — at age 62 — can lock in permanently reduced benefits. Waiting until your full retirement age (likely 67) or even up to age 70, can mean thousands more in annual income.
The key is to integrate Social Security into your overall income strategy, which may also include annuities, Roth IRA withdrawals or tax-efficient drawdowns from brokerage accounts.
And don’t overlook health care.
Even with Medicare, retirees can spend hundreds of thousands of dollars out of pocket on premiums and uncovered services, so consider a health savings account part of your retirement toolkit.
As the realities of aging become more immediately relevant, solutions like life insurance and long-term care planning can play a vital role in protecting your retirement assets from unplanned costs.
4. Encores: Working in retirement
For many Gen Xers, “retirement” doesn’t mean exiting the workforce entirely — it means redefining work on their own terms. Whether through consulting, part-time roles or entrepreneurial pursuits, staying engaged can supplement income and add purpose.
But working in retirement can also affect your benefits. If you claim Social Security before full retirement age and continue earning income, your benefits may be temporarily reduced based on the retirement earnings test.
Additionally, earned income can push you into higher tax brackets or increase Medicare premiums.
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The good news: Continued income can reduce pressure on your savings. The key is to build a financial plan that coordinates all income sources — earned, invested and guaranteed — to preserve financial efficiency.
5. The outro: Leaving a legacy
Retirement isn’t just about spending down assets, it’s also a chance to think about what you’ll leave behind.
And if privacy or probate avoidance is a concern, tools like living trusts and whole life insurance offer alternate approaches to intergenerational wealth planning.
6. Bonus tracks: Planning for life’s surprises
Life doesn’t always stick to the setlist. Whether it’s a market downturn, an unexpected illness or family dynamics shifting in retirement, having contingency plans is essential.
Stress-testing your financial plan — such as looking at “what-if” scenarios like long-term care needs or a 20% portfolio dip — can help you prepare for surprises.
Maintaining an emergency fund (even in retirement), diversifying your income sources and including protection elements like life insurance and long-term care coverage can help make your retirement plan more resilient.
Final track: This isn’t a rewind – it’s a remix
Retirement planning for Gen X isn’t about recreating your parents’ retirement. It’s about building a life that reflects your values, your family responsibilities, and your future reality.
The good news is that you don’t have to figure it out alone, or all at once. Retirement planning is an ongoing process — one that benefits from thoughtful reflection, clear priorities and the right resources along the way.
After all, the most successful retirement plans, much like the best playlists, aren’t set in stone. They’re built to adapt, evolve and carry you confidently into your next chapter.
