- - Boomers Collected First, Now Gen X May Pay the Price for Social Security’s Problems

Stacy GarrelsJanuary 13, 2026 at 5:05 AM

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Much of the conversation around retirement has focused on baby boomers aging into Social Security at record rates. But beneath those headlines, a quieter (and potentially more insidious) retirement challenge lurks for a different generation.

Data suggests Gen X could be the group most vulnerable to any future Social Security cuts, thanks to weaker safety nets, heavier caregiving responsibilities, and plain old unfortunate timing.

Understanding these risks now can help Gen Xers strategize, making smart money moves that strengthen long-term financial stability.

Below, we break down why Gen X is uniquely vulnerable and what steps can still make a difference.

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Gen X is approaching retirement at the worst possible moment

The oldest Gen Xers will begin turning 65 in 2030. That timing matters because it coincides with growing strain on the Social Security system and the projected depletion of the program's trust fund in the early 2030s.

If lawmakers don't intervene, Social Security benefits could be reduced by roughly 24% to match incoming payroll taxes.

Gen X may be the first generation to retire under those reduced benefit levels, leaving less room to recalibrate in retirement.

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Many Gen X workers missed out on traditional pensions

Unlike many baby boomers, Gen X entered the workforce as defined-benefit pensions were exiting.

Instead, this generation was pushed toward 401(k) plans — often early in their careers, before automatic enrollment and employer matches were common.

This shift placed more responsibility on individuals, often during periods of wage stagnation, job instability, and market volatility.

Retirement savings gaps are widespread among Gen X

Surveys consistently show Gen X lagging behind other generations in retirement readiness. A majority report being behind on saving.

Gen Xers have had less time to recover from major financial disruptions such as the dot-com bust, the Great Recession, and pandemic-era inflation. Amid these downturns, they've still had to juggle everyday expenses and family obligations.

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The sandwich generation strain hits Gen X especially hard

Gen X is often called the "sandwich generation," as they're spread thin between two sets of generational demands. Many are helping aging parents while still supporting children or young adult kids.

The emotional and financial costs of caregiving can derail retirement planning. Money that might otherwise go toward investments or debt reduction often gets redirected to medical expenses, housing support, or emergency assistance for family members.

Social Security was never meant to replace a full paycheck

Even without cuts, Social Security is designed to replace only a portion of pre-retirement income. For middle-income earners, that's typically about 40% of wages.

For Gen Xers without strong personal savings, reduced benefits could mean relying more heavily on part-time work, delayed retirement, or lifestyle cutbacks — especially as health costs rise with age.

Gen X expects to rely on Social Security even while doubting it will exist

Despite widespread anxiety about Social Security's future, many Gen Xers are still counting on it.

AARP polling shows that more than 8 in 10 Gen X respondents will rely on Social Security for at least part of their income, even as they say they're worried the program may not be there when they retire.

That paradox forces many Gen Xers to plan defensively — if not haphazardly — rather than confidently.

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Delaying retirement may not solve everything

Many Gen Xers plan to work longer to compensate for lower savings and potential benefit cuts. While this delay can increase Social Security payouts, it's not always guaranteed.

Health issues, caregiving demands, or job market shifts can force earlier-than-planned retirement. Relying solely on working longer leaves little margin for error.

Longevity risk is growing, but savings haven't kept up

People are living longer, which increases the risk of outliving retirement savings. That longevity risk is especially concerning for Gen X, whose savings are already strained.

As such, Gen X retirees may face difficult decisions later in life, such as foregoing medical care or tapping into home equity to cover basic expenses.

Why policy uncertainty matters more for Gen X than boomers

Baby boomers began retiring when Social Security's finances were stronger and benefit rules were more stable. Gen X faces far more uncertainty, including potential changes that could reshape claiming ages, benefit formulas, or taxation.

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Fear and confusion about Social Security may push Gen X into costly decisions

Confusion about how Social Security works may compound Gen X's retirement challenges. AARP research found that fewer than 1 in 3 Gen Xers correctly understand that benefits would continue if the trust fund runs short.

That misunderstanding can lead to costly choices, such as claiming benefits earlier than necessary or excluding Social Security entirely from retirement planning, locking in permanently lower monthly income.

What Gen X can still do to prepare

While the challenges are real, Gen X isn't out of options. They can take steps to reduce risk and prepare, such as:

Minimizing bills, such as eating out and unused subscriptions, to increase savings.

Reducing financial support for college-age children, such as redirecting them to more affordable schools and encouraging part-time work to contribute toward costs.

Limiting or cutting any support toward adult children.

Maximizing 401(k) contributions, taking advantage of catch-up contributions.

Paying down high-interest debt.

Exploring long-term care insurance now, before you need it, while rates are more affordable.

Stress-testing retirement plans under reduced Social Security scenarios

Above all, working with a financial professional can help you identify gaps and prioritize steps that provide the most protection.

Bottom line

Gen X may not dominate retirement headlines, but they face a unique combination of weaker safety nets, intense caregiving pressures, and poor timing around Social Security's financial outlook. This makes proactive planning more important than ever.

It's not all doom and gloom, though. Gen Xers are on the cusp of a great wealth transfer, as they stand to inherit $1.4 trillion a year from boomers every year over the next decade.

About 30% of households will receive a wealth transfer in their lifetime, providing a needed cushion for many Gen Xers. Inheritance or not, there's still plenty of time for GenXers to save aggressively and strengthen their retirement plan.

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Source: “AOL Money”