3 Traits That Are Making It Harder for Gen X to Retire, According to a Personal Finance Expert
As Generation X approaches retirement age, a personal finance expert highlights three key traits that this generation prides itself on—but which may actually be hindering their ability to retire comfortably. Known for their independence and resilience, Gen Xers have crafted their own approach to work and finances. However, some habitual behaviors stemming from their values could be inadvertently making the transition to retirement more challenging than expected.
1. Keeping Their Expectations Realistic
Gen Xers tend to have a practical mindset, often steering clear of high-risk financial moves. Their realistic approach helps them avoid scams and poor investments, yet it also means they might shy away from opportunities that require risk but offer larger rewards. This cautiousness frequently leads to conservative retirement saving habits.
For example, many Gen Xers contribute only what feels comfortable to their retirement plans, instead of adjusting their current spending to save more aggressively. According to a Bankrate survey, 69% of Gen X workers admitted to being behind on their retirement savings; 42% of them said they were "significantly behind." Bankrate’s senior economic analyst, Mark Hamrick, pointed out that a major challenge for Americans is aligning their retirement contributions with realistic long-term financial needs.
2. Being Humble About Major Achievements
Raised to value humility, many Gen X individuals tend to understate their accomplishments. While seen as good manners, this humility can have unintended financial consequences. When successes go unnoticed, opportunities for raises and promotions—critical factors for boosting retirement contributions—can be limited.
Areen Shahbari, CEO of Shahbari Training & Consultancy and an instructor at Harvard Extension School, underscores the importance of self-promotion. "If you don’t self-promote, your contributions will probably not be visible or recognized, which will limit your ability to get a promotion, a raise, or important projects that will help you advance in your career," Shahbari said. For those who find it uncomfortable to talk about themselves, this could mean missing out on financial growth opportunities essential for retirement readiness.
3. Refusing to “Sell Out”
Authenticity is a cornerstone value for Gen X, driving many to resist governmental and corporate influences in their personal and financial decisions. This strong preference for independence can make it especially difficult for them to engage with the retirement planning options that often feel like “selling out.”
Such resistance might lead some to delay retirement planning altogether because none of the available solutions align perfectly with their values. However, avoiding decisions can leave them unprepared when the time to retire arrives. Experts emphasize the need to accept imperfect options, choosing the best available paths rather than holding out for an ideal that may never come.
As Gen X continues to navigate their retirement journey, balancing their values with practical financial planning will be key. Recognizing the potential drawbacks of their own traits may help them take actionable steps toward securing their future.
Kayla Asbach is a writer covering relationships, psychology, personal finance, and human interest topics. She is currently pursuing her bachelor’s degree at the University of Central Florida.