Gen X faces retirement anxiety as Social Security funding wanes

Generation X, now between 46 and 61 years old, is confronting a retirement outlook shaped by the decline of employer pensions and the rise of 401(k) plans, which place saving responsibilities on employees. Individuals like Chris Branaman, a 53-year-old IT worker from Bay City, Michigan, have saved roughly $100,000 but doubt it will sustain retirement. A survey by financial-services firm NFP indicates that 41% of workers over 55 now view Social Security as their primary retirement income, a sharp increase from the previous year.

Only about 14% of private-sector workers still receive pensions, leaving most to depend on a two-legged approach of personal savings and Social Security, while the median retirement nest egg sits at $107,000 against a perceived need of $700,000. The Social Security trust fund is projected to encounter a shortfall in 2032, which could lead to benefit cuts for the 70 million current recipients. Consequently, many Gen Xers anticipate continuing to work past traditional retirement age, while also juggling financial pressures such as supporting adult children and coping with rising living costs.