Only 14% of Gen Xers have access to a traditional pension, compared to 44% of baby boomers. Many Gen X workers didn’t have the tools that are now standard in retirement plans — like automatic enrollment and target date funds.
“Gen X is the first generation to shoulder the full burden of retirement. They became DIY financial planners by necessity, not by choice,” said Nick Lane, president of Equitable. “Now at the beginning of their careers, as older Gen Xers are thinking seriously about how they will live the 20 to 30 years of retirement, they are facing a new chapter – one that requires more than just accumulating assets.
“To grow their wealth, plan for retirement and leave a legacy, Gen X investors need comprehensive wealth planning and sophisticated strategies. They are looking to work with trusted financial professionals to help them achieve these priorities.”
Planning gaps, competing priorities
Nearly eight in 10 respondents reported confidence in their investment decisions and said they are proactive and invest while working.
But 40% of Gen Xers said they don’t have a formal financial plan. Among those who do, nearly half have created the plan independently, which can leave gaps in broader financial strategies, the study found.
Survey respondents were high earners who did not expect to receive an inheritance or principal benefit of $100,000 or more.
The study highlights the pressures facing Gen X as the “sandwich generation,” supporting children and aging parents while threatening retirement.
74 percent of Gen X respondents say leaving a family legacy is a top priority — adding complexity to long-term planning. Retirement can take 20 to 30 years, while estate planning moves further into the future.
Risk averse, open to advice
Gen X respondents talked about major economic disruptions during their careers, including the dot-com boom, the 2008 financial crisis and the COVID-19 pandemic.
As a result, 55% described themselves as risk averse and unwilling to increase investment risk. Research notes that more conservative portfolios can impact retirement outcomes and legacy goals.
Despite their independent approach, Gen X investors expressed openness to professional guidance.
More than three out of three said they trust the recommendations of advisors, 84% said they want an advisor who understands their financial goals before contacting them.
Eighty-one percent say guaranteed income is important – and more than 70% will use guaranteed income strategies if recommended by a trusted advisor.
“Many Gen Xers have developed their own investment savvy, but they also value advisors who are empathetic and take the time to understand what’s really important to them,” said Molly Reese Ward, financial advisor at Equitable Advisors.
“In my conversations with Gen X clients, I’ve seen firsthand how much they want tailored advice that considers their entire financial picture – not just investments. That way advisors can earn their trust and help them reach their goals.”
