Uniquely positioned between larger generations, Generation X investors aged 44-59 are facing difficult financial conditions. After living through previous financial crises and now balancing dual caregiving roles for children and aging family members, Gen X investors are feeling significant financial strain.

More than half (56%) of Gen X investors currently provide financial support to their parents or children, according to Nationwide's tenth annual Advisor Authority study, powered by the Nationwide Retirement Institute. Among them, more than one in five (21%) report taking on large levels of debt to manage this responsibility. To meet these financial commitments, a quarter (24%) of Gen X investors are taking on credit card debt, while more than a third (35%) are reducing nonessential expenses.

The financial responsibility of supporting both parents and children is also taking a toll on Gen X investors' retirement savings. One in five (20%) report being unable to save for retirement, while 23% have reduced or halted retirement savings due to supporting their children and/or parents. What's more, 16% have tapped into retirement accounts or investments to manage these financial pressures.

Beyond family responsibilities, broader economic factors are also compounding retirement challenges for Gen X investors. One in four (26%) non-retired Gen X investors feel they will retire later than planned because of inflation with more than two in five (44%) expecting to retire at age 66 or later. This prediction stands in contrast to a recent EBRI study¹ showing a median retirement age of 62.

With retirement obstacles mounting, many Gen X investors feel like they have a long way to go to reach retirement readiness. One in five (20%) believe they would need $2 million or more in retirement savings to feel comfortable about their financial future. However, only 7% report saving that amount, and just 16% report having half that amount saved ($1M). Alarmingly, three in ten (30%) report having less than $100,000 saved for retirement.

"Gen X investors have shouldered the impact of major economic events, from the dot-com crash in 2000 to the Great Recession in 2008, while also entering the workforce just as pensions were being phased out, leaving them responsible for building their own retirement savings," said Craig Hawley, president of Nationwide Annuity. "Though these experiences have built resilience, many now face the added financial strain of supporting both aging parents and children. For those Gen Xers struggling financially, it's not too late to get back on track—with the right long-term plan developed alongside a trusted financial professional."

Despite pessimism, Gen X embrace pragmatism

Having weathered significant economic events during their careers, Gen X investors are less optimistic about their financial outlook but taking proactive steps to prepare for potential near-term volatility.

Compared to other generations, Gen X is the least optimistic about their financial outlook over the next year (36%), outpacing Gen Z (40%), Baby Boomers (45%) and Millennials (49%).

Even so, this group is taking steps to manage short-term disruptions. Six in ten (60%) pre-retiree (aged 55-59) Gen X investors have adjusted their portfolios in response to high inflation, and 67% report having sufficient savings to survive a potential recession in the next 12 months. Despite these efforts, one in ten (10%) say they struggle to afford basic household expenses like groceries and utilities.

"While it's understandable that Gen X investors are less optimistic about their financial outlook, their life experience has also made them more pragmatic," said Hawley. "A big challenge for the Sandwich Generation is that they often put the needs of their loved ones above their own, leaving them in a potentially precarious financial situation that can have long-term implications. It's encouraging to see some are taking action to address these challenges."

Gen X investors are increasingly turning to experts for financial guidance, with nearly four in ten (37%) currently paying for advisor services, up from 29% just six months ago. Additionally, 21% believe a financial professional helps them stay focused on long-term goals, and 32% of Gen X investors with an advisor frequently discuss retirement readiness.

Advisors confident in understanding Gen X needs

Financial professionals feel attuned to the unique challenges faced by their Gen X clients, developing strategies to enable a comfortable retirement. Nearly nine in ten (88%) advisors report their clients financially support aging parents or children, with 55% managing and paying caregiving costs.

Furthermore, six in ten (60%) advisors say their clients plan to continue supporting family members in retirement, with 35% balancing costs for both children and aging parents.

To address these mounting commitments, advisors are providing tailored tools and strategies for managing family-related expenses in retirement. Over four in ten (42%) of advisors whose clients support their children and/or aging parents are utilizing tax deductions and credits to help manage the financial pressures of familial expenses in retirement, while 36% suggest long-term care insurance for aging parents. Nearly the same share (35%) are helping clients prioritize retirement savings over other expenses, often using retirement investment vehicles like annuities (82%) to safeguard assets from market risks.

"Gen X investors are at an age where the financial decisions they make can carry massive implications for their retirement security," said Hawley. "Financial professionals can help this group create a holistic plan for addressing factors like long-term care, taxes and income in retirement. Good advisors can identify gaps and create plans to help clients address them before it's too late."

The Nationwide Retirement Institute offers additional resources to help advisors facilitate conversations with clients.

For additional insights on this survey data, see our infographic.

Nationwide's tenth annual Advisor Authority study powered by the Nationwide Retirement Institute^® explores critical issues confronting advisors, financial professionals and individual investors—and the innovative techniques that they need to succeed in today's complex market.