Around one in five Gen X workers expect never to fully retire, while almost six in 10 say their income barely covers – or fails to cover – their expenses, adding to growing evidence that financial insecurity is extending working lives as employers grapple with an ageing workforce.
Nearly one in five Gen X workers (19%) do not expect ever to fully retire, while another 19% anticipate working beyond the traditional retirement age, according to new research revealing growing financial insecurity among workers approaching later life. The Gen X Financial Outlook Report from career platform Zety found that 58% of US Gen X workers say their current income either only just covers their expenses or does not cover them at all. Meanwhile, more than six in 10 (61%) feel less financially secure than they expected to be at this stage of their lives.
Inflation and rising living costs are having the greatest impact, but the findings suggest Gen X is also carrying the cumulative effects of several major economic shocks – from the dot-com crash and 2008 financial crisis to the Covid-19 pandemic and subsequent cost-of-living pressures. The findings add to mounting evidence that the traditional relationship between work, age and retirement is changing. As Fair Play Talks recently highlighted for Age Without Limits Day, nearly one in four workers globally is now aged over 55, as falling birth rates and longer lives reshape labour markets.
For employers, the implications extend far beyond retirement planning. As more people remain economically active for longer, organisations will increasingly need to consider age-inclusive career development, financial wellbeing, reskilling, health, flexible working and how jobs are designed for multigenerational workforces.
RETIREMENT MOVING FURTHER OUT OF REACH
The traditional idea of retiring at a predictable age appears increasingly uncertain for many Gen X workers. The survey found:
- 15% expect to retire at 59 or younger;
- 16% expect to retire between 60 and 64;
- 20% expect to retire between 65 and 67;
- 19% plan to retire at 68 or older; and
- 19% do not expect ever to fully retire.
Taken together, nearly two in five respondents expect either to work until at least 68 or never completely leave the workforce. “Gen X has spent much of its working life adapting to one economic challenge after another,” said Jasmine Escalera, career expert at Zety. “Retirement is no longer a fixed milestone but something they have to continually rethink as economic conditions change. That reality is reshaping how this generation approaches work, savings, and financial planning.”
GEN X RETIREMENT PROSPECTS
Importantly, concerns about Gen X’s retirement prospects are not new. As far back as 2021, Fair Play Talks reported research warning that Gen X was at risk of inadequate income and poverty in retirement. The International Longevity Centre UK warned that many people in the generation were failing to save enough to achieve an adequate retirement income.
Separate research that year found millennials and Gen X were considerably more worried about retirement than older generations. Five years later, the latest Zety findings suggest those concerns have not disappeared.
INFLATION HITS GEN X HARDEST
Among the economic shocks Gen X has experienced during its working life, the recent period of inflation and rising costs has had the greatest reported impact on personal finances. Almost two-thirds (64%) said inflation and rising costs since 2022 had negatively affected them financially. That compares with:
- 46% citing the Covid-19 pandemic;
- 23% citing the 2008 financial crisis and Great Recession; and
- 10% citing the dot-com bubble of the early 2000s.
The pressure is now being felt in everyday household finances. More than one-third (36%) say their current income only just covers their expenses, while another 22% say it does not cover their expenses at all. That means almost six in 10 Gen X workers surveyed have little or no financial headroom during what would traditionally be considered their prime earning years.
SECOND JOBS, CUTS AND DELAYED RETIREMENT
Gen X workers are responding by making significant changes to their finances and working lives. More than half (53%) said previous economic downturns had weakened their confidence in their retirement strategy. One in five said they had completely lost confidence and made major changes to their plans.
The most common response has been cutting expenditure, with 44% reducing their spending. Others are:
- paying down debt (35%);
- increasing savings or retirement contributions (34%);
- taking a second job or side hustle to generate additional income (25%);
- formally delaying retirement (18%); or
- changing their investment strategy (16%).
The finding that one in four is generating additional income through a second job or side hustle is particularly significant for employers. Financial pressures do not remain outside the workplace. Employees juggling additional work alongside their primary jobs may face greater risks of fatigue, stress and burnout, reinforcing the case for employers to consider financial wellbeing as part of their wider workforce strategy.
GEN X LESS FINANCIALLY SECURE
For many Gen X workers, their financial position also falls short of where they expected to be by this stage of their careers. Overall, 61% feel less financially secure than they had anticipated. That includes 35% who feel less financially secure and another 26% who describe themselves as much less financially secure than expected.
Retirement savings are the biggest source of concern. More than half (52%) worry they have not saved enough for retirement, while:
- 24% are concerned about healthcare costs;
- 14% worry about outliving their savings; and
- 11% fear a market downturn before they retire.
Looking back, 43% regret not beginning to save for retirement earlier, while 21% regret not saving consistently throughout their careers. There are signs that these pressures stretch beyond the US. In the UK, research reported by Fair Play Talks last year found that financial insecurity is forcing older employees to work longer.
That research exposed a particularly difficult contradiction. Many older employees need to remain in employment for financial reasons at the same time as age discrimination can make it harder for them to find and secure work.
WHY PEOPLE ARE WORKING LONGER
The distinction between choosing to work longer and being unable to afford retirement is critical. Remaining in employment later in life can be positive. Many people want to continue working because they enjoy their careers, value the social connections work provides or simply want to remain professionally active.
But working longer by choice is very different from being financially unable to retire. The Zety findings suggest economic necessity could increasingly influence how long some Gen X employees remain in the labour market. And this is not a new phenomenon. Fair Play Talks reported in 2021 that one in three older workers expected to work beyond 70 or never retire.
For employers, that distinction matters. An ageing workforce should not simply be regarded as an opportunity to retain experienced employees for longer. Organisations also need to understand the financial, health and caring pressures that may accompany extended working lives.
AGEISM RISKS CREATING A RETIREMENT TRAP
Perhaps the biggest contradiction is that older workers may increasingly need to work for longer while simultaneously facing barriers to doing so. Age discrimination can restrict recruitment, promotion, training and career-change opportunities at precisely the stage when employees may need or want to remain economically active.
Fair Play Talks has repeatedly highlighted this problem. Research published in 2024 found that age discrimination was driving older workers out of the workforce. Another study found two-thirds of baby boomers believed age discrimination was limiting their career options.
Combined with the latest Gen X findings, this creates a potential retirement trap. Workers may not have accumulated enough financial security to leave employment, yet ageism can make it harder for them to remain employed, progress or find another job. That is why age inclusion is becoming an increasingly important responsible business issue.
AN AGEING WORKFORCE
Longer working lives also challenge the traditional idea of a linear career culminating in retirement at a fixed age. If substantial numbers of employees expect to remain at work into their late 60s and beyond, organisations need to think differently about careers in later life. That means avoiding assumptions that workers in their 50s and 60s are simply “winding down”.
Many could still have 10, 15 or even 20 years of working life ahead of them and need continued access to training, reskilling, promotion, new technology and meaningful career opportunities. This becomes particularly important as artificial intelligence and other technologies reshape jobs. Employers that overlook older workers when investing in new skills risk creating a divide between employees considered worth developing and those incorrectly assumed to be approaching the end of their careers.
Recognition of this challenge is growing. A global campaign to champion age inclusion in the workplace was launched last year as employers face increasingly multigenerational workforces. The demographic direction makes this particularly urgent. With nearly one in four workers globally already aged over 55, age inclusion is moving from a peripheral diversity issue towards a mainstream workforce challenge.
FINANCIAL WELLBEING IS A WORKPLACE ISSUE
The Zety findings also reinforce the connection between employees’ financial circumstances and their experience at work. Financial stress can affect concentration, mental wellbeing, productivity and career decisions. And workers approaching retirement may face a particularly complex combination of pressures – from mortgages and debt to supporting children, caring for ageing relatives and trying to accumulate sufficient retirement savings.
For some Gen X workers, self-employment may make the challenge even harder. Previous analysis highlighted by Fair Play Talks warned that self-employed Gen Xers faced particularly difficult retirement prospects, partly because of lower pension participation and savings. Financial wellbeing should therefore increasingly form part of workforce strategy.
Support does not mean employers assuming responsibility for employees’ personal financial decisions. But organisations can provide access to financial education and guidance, pension information, flexible benefits and clearer retirement-planning support, while ensuring employees understand what help is available before financial pressures become acute.
WORKING WELL FOR LONGER
There is also an important wellbeing dimension. As employees work later into life, organisations will need to consider whether jobs are sustainable over increasingly long careers. Flexible working, reasonable adjustments, occupational health support, job redesign and phased approaches to retirement could all become more important.
The challenge is not simply to enable people to work for longer, but to enable them to work well for longer. That distinction will become increasingly important as employers manage workforces spanning multiple generations with different financial circumstances, health needs, caring responsibilities and expectations of work.
WHY THIS MATTERS FOR RESPONSIBLE BUSINESS
The Gen X retirement squeeze should not be viewed simply as a personal savings problem. It points towards a much larger change in the relationship between age, work and retirement. The warning signs have been building for years. Previous research has highlighted inadequate Gen X retirement savings, growing numbers of older employees expecting to work beyond traditional retirement ages and age discrimination restricting employment opportunities.
The latest findings from Zety add another piece to that picture: 19% of Gen X workers surveyed do not expect ever to fully retire, while another 19% expect to work to at least 68. For employers, longer working lives require workforce strategies built around careers that may extend considerably further than traditional models assume.
That means asking whether older employees have equitable access to training, reskilling and progression; whether jobs remain physically and psychologically sustainable; whether age bias is affecting recruitment and promotion; and whether financial wellbeing and retirement support reflect the realities workers now face.
It also means recognising that there is no single older-worker experience. Some people will actively choose to work into their late 60s and 70s. Others may want to reduce their hours, change careers or gradually phase into retirement. Some may remain in full-time employment primarily because financial pressures leave them little alternative. Others could find themselves pushed out of work before they are financially ready to retire.
Responsible employers need enough flexibility to accommodate all of those realities. As populations age and careers lengthen, the question is therefore no longer simply when employees will retire. It is whether employers are creating age-inclusive, financially supportive and sustainable workplaces where people can continue to contribute – and thrive – throughout longer working lives.
WHAT EMPLOYERS SHOULD DO NEXT
The findings suggest employers need to start planning for a workforce in which retirement is later, less predictable and increasingly individual. With 19% of Gen X workers surveyed expecting never to fully retire and another 19% anticipating working until at least 68, organisations cannot assume employees in their 50s and 60s are approaching the end of their careers.
This is becoming particularly important as workforces age. Fair Play Talks recently reported that nearly one in four workers worldwide is now aged over 55, making age inclusion, retention and longer working lives increasingly important workforce issues.
For employers, there are several priorities:
Tackle ageism in recruitment and progression.
Review recruitment, promotion, redundancy and performance-management processes for age-related assumptions. This becomes even more important when people need to remain economically active for longer. Previous research has found that age discrimination is already driving some older workers out of the workforce, with workers over 51 more likely to report prejudice and some retirees and unemployed respondents attributing their employment status to age bias.
Keep investing in skills throughout people’s careers.
Training, reskilling and development should not stop once employees reach midlife. Workers in their 50s may have another 10, 15 or 20 years of employment ahead of them. This is particularly important as AI and technology reshape jobs. Research from 55/Redefined found that 92% of over-50s would stay in work longer if given retraining opportunities, underlining the value of lifelong learning.
Offer greater flexibility around later-life careers.
Retirement does not have to mean moving abruptly from full-time employment to no work at all. Flexible hours, reduced schedules, job sharing, career changes and phased retirement can give employees more choice over how they continue working. Previous research found that 62% of older workers increasingly see retirement as a gradual transition rather than a complete exit from work.
Strengthen financial wellbeing and retirement support.
With 58% of Gen X respondents saying their income barely covers or fails to cover their expenses, financial wellbeing should not be viewed solely as a personal issue. Employers can provide access to pension information, financial education and guidance, benefits information and retirement-planning resources so employees can make better-informed decisions about their futures.
Don’t assume working longer is always a choice.
Some employees remain at work because they enjoy their careers, value the social connection or want continued purpose. Others may simply be unable to afford to retire. As previously reported, financial insecurity is forcing older UK employees to extend their working lives even as ageism restricts opportunities. Employers should avoid treating all later-life workers as a single group with the same motivations or needs.
Make jobs sustainable over longer careers.
Longer working lives require workplaces that people can realistically remain in. Flexible working, appropriate workloads, occupational health support, reasonable adjustments and support for caring responsibilities can all help employees remain economically active without compromising their health and wellbeing.
Create meaningful later-life career pathways.
Older employees should continue to have access to promotion, career changes, mentoring and leadership opportunities rather than being assumed to be “winding down”. Research has found significant age-related barriers to career mobility, including two-thirds of Baby Boomers saying age discrimination limits their career options.
Use multigenerational workforces as an asset.
Longer careers create opportunities for knowledge-sharing, reverse mentoring and collaboration between generations. But managers need the skills to lead increasingly age-diverse teams without relying on generational stereotypes. With organisations increasingly managing four or even five generations simultaneously, age inclusion should form part of mainstream workforce planning rather than sitting on the margins of DEI strategy.
CREATING AGE-INCLUSIVE WORKPLACES
Ultimately, employers need to move away from the assumption of a standard career followed by retirement at a predictable age. The emerging workforce is likely to include people who want to work longer, need to work longer, want to work differently, or may need to leave employment earlier than planned.
Creating age-inclusive workplaces therefore means giving people greater opportunity and choice throughout their careers – while ensuring that those who need to remain in work are not simultaneously shut out by ageism. As working lives lengthen, the goal should not simply be to help people work for longer, but to enable them to work well for longer.
Read the Zety Gen X Financial Outlook report here.
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