Generation X is navigating a perfect storm of financial pressures, and many are approaching retirement feeling unprepared. In this article, we’ll look at how financial advisors can better support this sometimes-overlooked generation with real planning strategies from Sam Rodriguez at Foundation Wealth Partners.

Understanding the Unique Retirement Crisis Facing Gen X

When it comes to retirement planning, the conversation seems to be dominated by Baby Boomers or Millennials. But Generation X, those born between the mid-1960s and early 1980s, is sometimes left out of the spotlight. Yet, they may be the generation most in need of guidance.

At Foundation Wealth Partners, we’re seeing more Gen X clients nearing retirement age with a growing sense of financial unease. They’ve lived through back-to-back economic downturns, shifting family dynamics, and changing expectations about what retirement even looks like.

In a recent episode of Money and Stuff, we explored these exact issues. Below, I’ve highlighted the key takeaways for financial professionals who want to provide relevant and personalized advice to Gen X clients.

Why Gen X Is So Far Behind

1. Bad Timing and Big Life Events Collided

Some Gen Xers were just getting started with building wealth during the dot-com crash or the 2008 financial crisis. When recessions disrupted income growth, knocked down 401(k) balances, and wiped out home equity.

Compare that to Millennials, many of whom entered the workforce during the recovery phase of the Great Recession and benefited from a more resilient job market. Boomers, on the other hand, often reached their peak earnings during the economic boom of the 1980s and 1990s.

  2. The Hidden Cost of Being the Sandwich Generation

Unlike Boomers, Gen X can face dual caregiving responsibilities. With aging parents living longer and adult children staying home longer due to student debt or a tight housing market, Gen Xers can be financially squeezed from both sides.

This dual role isn’t just emotionally taxing, it can have a major impact on retirement savings. Even modest support for adult children could potentially cost hundreds of thousands in lost compound growth over time.

  3. They Were Taught to Stay Loyal, But It Didn’t Pay Off

Some Gen Xers grew up believing that sticking with one employer could lead to job security and steady promotions. But the job market changed. Frequent job changes became a path to higher salaries, something Millennials have embraced more easily.

The Real Cost of Family Support

Some Gen Xers may not realize how much helping their parents or adult children has cost them. On the Money and Stuff podcast, we shared that spending $10,000 today instead of saving it could lead to a $45,000 shortfall in retirement 20 years from now. Multiply that over a decade or two, and the financial impact is significant.

Advisors can play a key role by helping Gen Xers have honest conversations and by guiding them to set clear, compassionate financial boundaries.

Financial Advisor Insights: How to Help Gen X Clients Navigate Retirement

If you're working with or looking to attract Gen X clients, here’s how your guidance could be more relevant and impactful.

1. Start with a Planning-Centered Conversation

Some Gen Xers may hesitate to engage because they’re afraid of what the numbers might say. Leading with holistic planning, not investment products, could help create a safer space for them to explore their options without fear or judgment.

Tip: Use analogies that resonate. I often compare financial planning to mixing audio levels, adjusting spending, saving, investment risk, and retirement age to create the right financial sound.

  2. Help Them Reframe Retirement

For Gen X, retirement may not mean sitting on a porch reading the paper. It may involve consulting, travel, passion projects, or a phased transition into retirement. Help them visualize a flexible future that reflects their values and lifestyle, even if it doesn’t look like the traditional 65-and-done model.

  3. Address Emotional Money Baggage

Some of this generation carries trauma from market volatility. Recessions in their investing life may have left scars. Some are now overly cautious, prioritizing safety at the expense of needed growth. Others may be stuck in cash-heavy positions without realizing the long-term cost.

Educate them on how avoiding risk can actually create risk, especially when inflation is the guaranteed enemy.

How Gen X Can Catch Up Financially

Despite all these challenges, there is still time to regroup. Here’s what we think Gen X clients need most:

• Clarity on where they are financially today
• Direction on what adjustments they can make
• Peace of mind from a plan that adapts to life as it happens

If there’s one message I want fellow advisors to take away, it’s this. Start where your Gen X clients are. Build trust by recognizing their unique life timeline and help them create a future that fits.

Final Thoughts

If this resonated with you, subscribe to the Money and Stuff podcast where we unpack real-world issues facing today’s savers and retirees. The Gen X retirement conversation is just getting started, and we want to make sure it doesn’t get lost in the generational shuffle.