Gen X: ‘Do Not Make the Same Mistakes We Did’

About 80% of Generation X retirement plan participants—part of the next cohort of workers to reach retirement age—are not very confident they will be able to maintain their current standard of living in their golden years, according to the latest edition of Cerulli Associates’ “Cerulli Edge—U.S. Retirement Edition.”

Nearly the same proportion (81%) of Gen X respondents to Allianz Life Insurance Co. of America’s 2025 Q3 Quarterly Market Perceptions Study said the same, citing the increased cost of living as the main stressor. Fewer Generation Z members (75%), Millennials (77%) and Baby Boomers (63%) lacked confidence about that future lifestyle, Allianz reported.

Meanwhile, new research from the CFP Board revealed that less than 40% of Gen X participants agree they have achieved their financial goals, and only 37% of those surveyed said they are satisfied with their retirement savings. Gen X’s message for younger Americans? “Do not make the same mistakes we did.”

A Timing Issue

The most significant takeaway from Gen X participants surveyed is that it is never too early to start planning for retirement, according to the CFP Board’s “Lessons Learned: A Survey of American Gen Xers.” The researchers found Gen X adults’ biggest financial misconception when they were younger was “thinking they had more time to save for retirement.”

“There’s a saying that it’s not timing in the market—it’s time in the market,” says Kelly LaVigne, vice president of consumer insights at Allianz Life. “We want to make sure [younger generations] are taking as much advantage as possible of the potential growth [they] can get over a 30- or 40-year period of time.”

With only five to 20 years until they reach retirement age, depending on their age, members of Gen X may have their retirement timing and assets dictated by a bear market or recession, according to Cerulli. There is less time than for those in younger generations for Gen X members to adjust.

Looking back on financial decisions they made in their 20s and 30s, more than 90% of Gen X respondents regretted having delayed making financial plans for significant life events, according to Allianz. The standout financial event that Gen Xers wished they had prioritized earlier was retirement (53%)—with health issues/disability ranking second, 23 percentage points lower, at 30%.

Advice to Younger Americans

According to the CFP Board, which awards the Certified Financial Planner designation, the most common advice Gen X respondents (59%) had to share with younger generations was to start saving for retirement now—even if it means tucking away small amounts. Gen X also recommended creating an emergency fund (41%), investing as soon as possible (39%) and avoiding increasing spending as income grows (35%), among other factors.

Cerulli recommended “engaging with millennials on their terms.”

The firm found most Generation Z 401(k) participants surveyed (62%) said online saving tools and calculators provided by their recordkeepers are helping them save.

“If recordkeepers and advisers can help younger participants with these issues, they can build trust and relationships that can grow as Gen Zers and Millennials accumulate wealth,” the report stated.

Additionally, younger generations appear to be more comfortable using social media for communication and information gathering, including when making important life decisions. Cerulli’s 401(k) participant survey showed that Millennials have the highest rate of trust in social media as a source of financial information among the generations surveyed, and 21% of that cohort said social media is “very trustworthy.” Some are trusting in “finfluencers,” social media influencers who educate their followers about financial topics through short-form videos.

“The opportunity exists for recordkeepers to deliver unbiased, expert insight and perspective to younger 401(k) participants to help them make financial decisions,” Cerulli’s report stated. “Recordkeepers should consider not only new modes of delivery, but also who is delivering the message, to engage this group with relatable, authentic content.”

According to the Investment Company Institute, members of Gen Z are saving more for retirement than Gen X did at their age, adjusted for inflation, and a similar trend is occurring with Millennials. In 2022, Gen Z saved 2.5 times more than Gen X did at the same age in defined contribution plans.

Gen X employees can serve as mentors to younger staff looking to save, suggests Kevin Roth, the managing director of research at the CFP Board. Members of the older generation can talk about the very basics of retirement saving concepts, such as taking advantage of an employer match, and they can share examples of decisions they made or wish they had made when they were younger.

“While it’s not impossible to address the issues when you’re in your 50s and 60s, it’s much easier to begin to address them in your 20s,” Roth explains.

Teamwork to Support All Savers

Today, nearly half (49%) of Gen X reports being more financially anxious and less financially secure because of financial regrets from their 20s and 30s, according to the CFP Board. Simultaneously, 95% of Gen X participants said that their financial regrets have cost them at least some money over the course of their lives, with a median loss of nearly $100,000. Cerulli found that for unadvised Gen X 401(k) participants, their recordkeeper or employer often becomes the primary source of help with retirement planning. The firm suggested plan sponsors, recordkeepers and advisers all work to address Gen X’s retirement planning and advice needs.

“What the plan sponsor can do is work to build awareness for the things that are already offered through their plans,” says Elizabeth Chiffer, a research analyst on the retirement team at Cerulli. “The other thing they can do is see what else the recordkeeper is offering or the plan adviser is doing for advice and guidance solutions … maybe think about whether their recordkeeper is offering situational or point-in-time advice and perhaps implement that so the participants have a range of options.”

Chiffer says that even though advice, guidance solutions and financial wellness program topic interests may vary among generations, the offerings could “benefit all savers.” She says younger generations are recognizing they will have to do more on their end than Gen X did to “secure a comfortable retirement,” but that recordkeepers, plan sponsors and advisers could all do more to help.

Allianz Life’s LaVigne says it is important for plan sponsors to communicate to their participants of all ages, especially on subjects such as how the employer match works, if one is offered. He emphasizes re-educating retirement savers on the importance of target-date funds, which can help alleviate the stress of learning to manage one’s own risk within a 401(k).

“Plan sponsors have a really big responsibility right now in trying to get that education out to participants,” says LaVigne. “Right now, it’s more important to have base hits than home runs in getting ready for retirement.”