Half of Gen Xers Doubt Retirement Readiness as Experts Flag 7 Costly Mistakes
Updated
Updated · AARP · Aug 3
Half of Gen Xers Doubt Retirement Readiness as Experts Flag 7 Costly Mistakes
2 articles · Updated · AARP · Aug 3
Summary
50% of Gen Xers say they will not be financially ready to retire, and 25% have not started saving, according to Northwestern Mutual’s 2026 study cited in the report.
Seven recurring mistakes are driving that gap: delaying retirement planning, spending without a budget, making emotional investment moves, tapping retirement accounts early, carrying heavy debt, supporting family at their own expense, and failing to plan for longevity.
More than half of Gen Xers have done no retirement planning, only 26% work with a financial adviser, and nearly a quarter of workplace-plan participants have borrowed from retirement accounts, often sacrificing long-term market gains.
Debt and caregiving pressures deepen the strain: Gen X holds a median $26,207 in nonmortgage debt, while many in the Sandwich Generation divert savings to children or aging parents instead of their own nest eggs.
Financial planners say the damage is still reversible through budgeting, emergency savings, higher 401(k) contributions, and delaying Social Security—claiming at 62 cuts benefits 30% versus waiting until 67.