“Time is the most valuable asset you don’t see on a balance sheet.” For Generation X, that reality is biting. With the oldest of the group approaching age 60, the time to put a secure retirement in place is running out but not at all. The better news? Even if you’re a late starter, you can take aggressive steps now to fill the gap in savings, lower risk, and enter retirement with confidence.
1. Have an Overall Plan in Place Now
Among the largest reasons Gen Xers come up short is merely a lack of a formal plan. A full blueprint should include estimated savings requirements, income and expenditure analysis, insurance protection, investment distribution, taxation plan, and estate plan. As Northwestern Mutual’s wealth management expert Hugh McFadden says, “They need to sit down with a trusted adviser to map out what their retirement plan looks like.” This isn’t perfection it’s direction and clarity.
2. Max Out Contributions (and Use Catch-Up Rules)
In 2025, the 401(k)-contribution limit is $23,500, with an extra $7,500 for those 50 and older. Thanks to the SECURE 2.0 Act, ages 60–63 can go even further, contributing up to $34,750. IRAs allow $7,000 plus a $1,000 catch-up. These higher limits are a late starter’s best friend especially while you’re in peak earning years. Just keep in mind that beginning in 2026, individuals making more than $145,000 will need to make catch-up contributions using after-tax Roth dollars, which can still be a tax-free bonus later.
3. Max Out Tax-Advantaged Accounts Beyond the Basics
Roth 401(k)s and Roth IRAs are tax-free withdrawal vehicles, which are useful for diversifying sources of future income. Health Savings Accounts (HSAs) provide a triple tax advantage tax-free contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses. In 2025, $4,300 may be contributed to an HSA by individuals and families $8,550. They can also serve as sneak retirement savings for healthcare expenses, which could cost a couple retiring today an estimated $315,000, according to Fidelity.
4. Pay Off High-Interest Debt Before Retirement
High-interest loans and credit card debt can sap retirement dollars quickly. Paying off debt early preserves cash flow for investments. Refinancing a mortgage or merging loans with lower rates can also reduce the load, particularly when interest rates are still relatively low relative to historical standards.
5. Don’t Overestimate Social Security
While 29% of Gen X anticipates living on Social Security, the mean monthly benefit of approximately $1,422 won’t pay for most retirement budgets. Waiting until age 70 to receive benefits can bring payouts up to 76% higher. If at all possible, work a couple more years this not only increases benefits but allows savings more time to accumulate.
6. Diversify and Scale Back Risk as Retirement Approaches
Equities have traditionally beaten other asset classes, but short-term fluctuations can be merciless if you’re near retirement. A diversified portfolio blending stocks, bonds, real estate, and maybe annuities can even out returns. As you near retirement, transition into more conservative asset allocations to shield against market crashes such as the Great Recession, which was particularly tough on Gen X portfolios.
7. Reduce Smartly to Free Up Cash
Selling a bigger house and downsizing to a smaller, lower-priced one can release equity and reduce spending but watch out for pitfalls. Overestimating the value of your current residence, underestimating the price of a new one, and overlooking moving costs (as high as $14,000 for remote moves) can eat away at gains. Study market values, include taxes, and crunch numbers before taking the leap.
8. Use a Fiduciary CFP
Not every financial advisor is legally required to prioritize your interests. With the fiduciary standard, advisors have to advise what’s best for you rather than just what’s “suitable.” With the Department of Labor’s broader fiduciary rules now applying to more retirement advice, it’s a great time to ask, “Are you a fiduciary?” Fee-only fiduciary CFP®s align their pay with your success, sidestepping commission-based conflicts.
9. Practice Your Retirement Budget Early
Living on your estimated retirement income today can identify gaps and enable you to adjust before it’s too late. Reduce discretionary spending, postpone major purchases, and transfer the savings to retirement funds. This attitude adjustment from pursuing physical upgrades to preserving health, relationships, and meaning can facilitate the transition more easily and enrichingly.
10. Plan Part-Time or Consulting Work
If savings remain insufficient, working part-time provides income to supplement, postpones withdrawals, and keeps you intellectually and socially active. Gen Xers already anticipate retirement work converting skill into consulting or freelancing can be lucrative and flexible.
For Gen X, time is running out, but the game is far from over. By mixing higher contributions, tax-astute tactics, debt paydown, and expert advice, it’s possible to make a late start into a good finish and enter retirement with stability, dignity, and peace of mind.
