Gen X Hasn't Saved What They Need to Retire Comfortably—and It May Not Be Their Fault

Core Insights - Generation X faces the largest retirement savings shortfall, with an expected need of over $1.1 million but an anticipated savings of approximately $712,000, resulting in a gap exceeding $400,000 [1][6] Retirement System Changes - Gen Xers are lagging in retirement savings compared to older and younger generations due to significant changes in the U.S. retirement system, particularly the decline of pensions and the rise of defined contribution plans like 401(k)s [2] - Many Baby Boomers benefit from defined benefit pension plans, while Gen X entered the workforce during the transition to defined contribution plans, missing out on key features such as automatic enrollment and auto-escalation [3][4] Implications for Retirement Savings - The retirement savings shortfall for Gen X is a pressing issue, with limited time for older members of this generation to catch up as retirement approaches [5] - Strategies to address this shortfall include maximizing contributions to retirement accounts, delaying Social Security benefits to increase monthly payouts, and considering longer work tenures or more sustainable job roles as they age [7]