The Real Reason Gen X Hasn’t Saved Enough for Retirement and What It Means for Their Future

Among American adults, those in Gen X face the largest retirement savings shortfall, a recent survey by Schroders, the asset management firm, found.

While on average, those in this generation, born between 1965 and 1980, think they’ll need more than $1.1 million to retire comfortably, they expect to retire with about saved, leaving a shortfall of more than $400,000.

When it comes to retirement savings, Gen Xers lag behind their older (and younger) counterparts due to changes in the broader U.S. retirement system over the past few decades, namely the decline of pensions and the rise of defined contribution (DC) plans, like 401(k)s.

“While many Baby Boomers have defined benefit pension plans that provide a set income for life, Gen Xers entered the workforce as pensions were being replaced by DC plans and before key features like auto-enroll and auto-escalate became common,” said Deb Boyden, Schroders’ head of U.S. defined contribution.

401(k) features, like automatic enrollment—where workers are automatically enrolled in their workplace retirement plan—and auto-escalation, where 401(k) contribution rates increase automatically every year up to a certain amount, can encourage people to save more, since they don’t require you to opt in.

These features weren’t available to Gen X when they started making contributions, which is, in part, why they’re facing a gap.

With retirement fast approaching for older members of Gen X, they have limited time to catch up. However, there are some strategic moves that can help close the retirement savings shortfall.

• Contribute more to your retirement accounts: Consider maxing out your 401(k) in 2026, if you can. This year, the contribution limit is $24,500, but if you’re age 50 or older, you can make catch-up contributions worth up to $8,000. (Workers ages 60 to 63 qualify for a higher “super catch-up” of $11,250.) If you have an IRA, you’ll have until tax day to contribute to your account for this tax year. For 2026, the IRA contribution limit is $7,500, while the max catch-up contribution is $1,100.
• Delay Social Security: You can start collecting Social Security as early as age 62, but if you do so, your benefits will be reduced. At full retirement age (FRA), which is age 67 for those born in 1960 or later, you’ll receive full benefits. However, if you’re willing to wait longer to start collecting Social Security your monthly benefit will grow larger. For every year after FRA you delay collecting, up to age 70, your benefits will grow 8%.
• Think about working longer: One expert advises people in their 50s to think about whether they’d be able to continue working in their current role until they’re ready to retire. If they don’t think so, he suggests they consider switching to a position that’s more sustainable as they age.