Generation X: Juggling Retirement, Kids, and Aging Parents

If you're part of Generation X—born between 1965 and 1980—there's a good chance you’re feeling the squeeze. Between saving for retirement, supporting your kids, and helping aging parents, it can seem like your money and energy are pulled in every direction. But here's the good news: you're not alone, and it’s not too late to take control.

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✅Preparing for retirement
✅Managing college expeneses
✅Caring for aging parents.

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Retirement Readiness: There’s Still Time

Let’s start with retirement. The oldest Gen Xers are turning 60, while many are in their mid-40s and 50s. These are often called your "peak earning years." But even with good income, many Gen Xers are realizing they might not be where they hoped to be with retirement savings.

The average retirement savings for this group is around $300,000. That might sound okay, but the median—meaning the typical amount most people have—is much lower. It’s closer to $93,000, and in some studies, even as low as $40,000. At the same time, most Gen Xers say they’ll need about $1.5 million to retire comfortably. That’s a big gap.

Even more concerning? Only 16% of Gen Xers feel confident they’ll be able to retire the way they want. But here’s the hopeful part: there’s still time. These next years are critical for catching up and building a solid plan. Small steps—like increasing your 401(k) contributions by just 1%, working an extra year or two, or adjusting your retirement lifestyle expectations—can have a big impact.

Raising Kids: It’s Expensive (and It Adds Up Fast)

Whether you’re still stepping on Legos or sending college tuition payments, raising kids is another major pressure point for Gen X families. College is a big part of that challenge.

For the 2023–2024 school year, the average in-state tuition for a public college was about $11,260 per year. Private colleges? That’s more than $41,000 per year! And those numbers keep rising. In the past 20 years, total costs have gone up 38% for public schools and 29% for private ones.

To help cover these costs, many Gen X parents are turning to Parent PLUS loans. Over 3.8 million borrowers now owe more than $112 billion through this program. The average loan balance is nearly $38,000—and that’s money being borrowed right when parents should be saving more for their own retirement.

This is why we always remind families: there are loans for college, but there are no loans for retirement. Being a good parent doesn’t mean sacrificing your future—it means setting a good example. Talk to your kids about costs. Explore scholarships, state schools, and cost-sharing. Involve them in the conversation and planning process.

Caring for Aging Parents: The Hidden Financial Burden

Now let’s look at the other end of the family spectrum—your aging parents. Many Gen Xers are also providing support to Mom and Dad, either financially, emotionally, or physically. In 2020, more than 2.4 million U.S. parents received financial help from their adult children. On average, families gave over $2,000 a year.

But it’s not just money—it’s time, too. A 2023 report by AARP and S&P Global found that 16% of caregivers had to leave their jobs to care for parents. Another 27% cut back their hours or went part-time. That’s a double hit: more money going out, less income coming in—and lower retirement contributions over time.

Being stuck in the middle—helping parents and raising kids—can be exhausting. That’s why it’s so important to plan ahead. Talk to your parents now about their future care, their wishes, and whether they have legal and financial documents in place. A few conversations today can save you a lot of stress and uncertainty tomorrow.

A Clear Plan Brings Peace of Mind

Yes, Gen X is facing big financial challenges. But you don’t have to go it alone. Whether you’re behind on retirement savings, worried about college costs, or unsure how to care for your parents, you can start small—and start today.

👉 Remember: There’s power in having a plan. It gives you clarity, confidence, and control. Even if you’re feeling overwhelmed, just taking the first step can change everything.