Gen Xers fret over the future of Social Security. "I will likely be working in retirement."

Key Points:

• Generation X, now aged 46 to 61, faces a retirement crisis with many lacking sufficient savings and relying heavily on Social Security, which itself is projected to face funding shortfalls by 2032.
• The shift from employer-funded pensions to 401(k) plans has left many Gen Xers responsible for their own retirement savings, but median savings of $107,000 fall far short of the estimated $700,000 needed for retirement.
• Economic pressures, such as rising living costs, job losses, and responsibilities like helping children with college expenses, have forced some Gen Xers to dip into retirement funds early, complicating their ability to save adequately.
• Social Security was intended to be one leg of a three-legged retirement stool, but with only about 14% of Gen Xers having pensions, most must rely on 401(k)s and Social Security, increasing vulnerability if Social Security benefits are cut.
• Despite recent legislative improvements like automatic 401(k) enrollment, many Gen Xers feel unprepared and pessimistic about retirement, expecting to work into old age and emphasizing the need to educate younger generations about saving early.