Gen X workers (ages 44-59) face unique hurdles on their path to retirement. As the “Sandwich Generation,” they’re often simultaneously caring for both children and aging parents while navigating financial demands from multiple directions. Unlike previous generations, they aren’t able to rely on pensions as their primary retirement income vehicle and have weathered significant economic storms including the dot-com bust and Great Recession, according to a recent article in BenefitsPro.
A recent Fidelity study cited in the BenefitsPro article reveals promising solutions for Gen X’s retirement concerns. In an interview with BenefitsPRO, Lorianne Pannozzo, Head of Workplace Personalized Planning & Advice at Fidelity, explained that workplace managed accounts are proving particularly effective for Gen X participants. These accounts provide personalized investment strategies, customized planning, and professional portfolio management throughout the retirement journey.
The Fidelity study showed remarkable improvements for Gen X managed account holders. The number with at least three months of emergency savings more than doubled after enrollment, demonstrating increased financial wellness awareness. Additionally, those claiming they wouldn’t take drastic action during market downturns nearly doubled, indicating greater confidence in their investment strategy. Perhaps most significantly, Gen X participants’ overall financial confidence has nearly doubled since enrollment, an important shift considering they initially reported the lowest confidence compared to other generations.
While obstacles remain—only 53% of Gen Xers feel confident about retiring on their own terms, with concerns about healthcare costs and Social Security—there are encouraging signs. Gen X IRA contributions increased 16% year-over-year, and long-term Gen X 401(k) savers (those who’ve been in their plan for 15 years) saw an 18% account balance increase from 2023 to 2024 (from $508,000 to $589,400).
For employers looking to support their Gen X workforce, Pannozzo recommended several strategies: offering robust 401(k) matching, promoting Health Savings Accounts (HSAs) for tax-efficient saving, providing workplace in-plan annuities for guaranteed retirement income, considering phased retirement options, and implementing managed accounts for personalized guidance. With one-quarter of the workforce projected to be over 55 by 2032, these approaches can help secure Gen X’s financial future despite their unique retirement challenges.
