Gen X believes retirement will require a paycheck just as big — or bigger — than today’s

As the oldest members of Generation X prepare to turn 60 in 2025, they’re facing a potential shortfall in retirement savings. Most members of the cohort report that their retirement nest egg is three times as much as their annual salary, if that, while only 36% say they have financially planned for a long-term care event.

This is according to the 2024 Planning & Progress Study published by Northwestern Mutual. The survey was conducted early this year by The Harris Poll across a sample of 4,588 Americans ages 18 and older. The results were weighted by demographic details, including age, gender, marital status, education and income.

The survey found that 58% of Gen X respondents and 64% of baby boomers “who are not yet retired say they expect their monthly income in retirement will need to be the same or more as their current monthly income to retire comfortably.”

One-third (33%) of Gen X respondents believe they’ll need to be paid more than their current working salary in retirement, compared to 29% of baby boomers. Another 25% of Gen Xers and 35% of boomers believe they’ll need the same amount as their working salary for a comfortable retirement.

“Adding to the financial challenge, more than half of Gen X (51%) says their retirement savings are just three times larger than their annual income or less – while many financial experts recommend saving approximately 10 times an annual salary or more before retirement,” the study explained.

In terms of planning for the best retirement outcome, many people may not be taking the proactive steps required to adequately save for their later years, according to Kamilah Williams-Kemp, chief product officer at Northwestern Mutual.

“For millions of Gen Xers who are fast approaching 60, the difference between retiring on time and feeling comfortable or working longer and lowering retirement expectations will come down to financial planning,” she said. “It’s never too late to take action, but the challenge and the stakes rise the longer people wait.”

Other recent data, however, suggests that Gen X is making progress with retirement savings. A survey from Fidelity released in August found that Gen X savers posted strong gains in individual retirement accounts (IRAs), based on 401(k) and 403(b) data derived from 26,100 corporate defined contribution plans and roughly 32 million total participants as of June 30, 2024.

The generation has also demonstrated above-average interest in finding housing that is suitable for aging in place.

Gen X members are already taking proactive steps by thinking “about where they will live in their 70s, 80s and even 90s,” according to reporting earlier this year by The New York Times based on data from the Harvard University Joint Center for Housing Studies.