Oct 14, 2026

5 Ways Gen X Is Adapting to a Tougher Retirement Reality

Inflation has made retirement planning more difficult for many Gen X workers. A new survey from online jobs platform Zety found that 64% say rising costs have hurt their finances, while nearly 1 in 5 don't expect to ever fully retire.

Despite those challenges, many are taking concrete steps to strengthen their retirement outlook. Here are the five strategies they're using most often.

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1. Cutting Spending To Free Up More Money for Retirement

The most common step Gen Xers are taking is reducing spending, with 44% saying they're cutting back to improve their financial position.

"Cutting back on spending can create more room to put money toward retirement, especially when everyday expenses are taking up so much of your paycheck," said Dr. Jasmine Escalera, career expert at Zety. "That can be an important exercise as retirement gets closer."

Escalera recommended tracking exactly where your money is going to identify expenses that can be reduced or eliminated. Doing so can also provide a clearer picture of the lifestyle your retirement savings will need to support.

2. Paying Off Debt Before Leaving the Workforce

More than a third of Gen Xers (35%) are prioritizing debt repayment as they prepare for retirement.

"Paying down debt now can mean having fewer monthly expenses to carry into retirement," Escalera said. "The less money Gen X has going toward debt payments later, the more flexibility they can have with the retirement income they've built."

With fewer required payments competing for retirement income, retirees may have more control over how they use their savings and other income sources.

3. Increasing Retirement Contributions and Savings

About a third (34%) of Gen Xers are boosting savings and retirement contributions in an effort to strengthen their long-term finances.

"Increasing retirement contributions now gives Gen X a chance to make the most of the working years they still have," Escalera said. "There is still time to add to what they've already built, and even incremental increases in contributions can help strengthen their retirement savings over time."

She also encouraged workers to take full advantage of employer-sponsored retirement benefits whenever possible.

"If an employer offers matching contributions, maximizing that benefit where possible can help workers get more out of the money they're already putting toward retirement," Escalera said.

4. Taking on a Side Hustle To Boost Income

A quarter of Gen Xers are looking beyond their primary jobs for additional income, with 25% reporting that they've taken on second jobs or side hustles.

"Additional income can help workers make progress toward their financial goals without relying entirely on what they earn from their primary job," Escalera said.

However, she cautioned that workers should be realistic about how much extra work they can sustainably take on. A side hustle can be a valuable financial tool when it supports long-term goals without causing burnout.

5. Delaying Retirement To Strengthen Finances

For some Gen Xers, the solution is extending their careers. The survey found that 18% are postponing retirement to improve their financial position.

"Working a few years longer can give Gen X some extra time to build up their retirement savings and shorten the amount of time they'll need to rely on those savings once they stop working," Escalera said. "That can make postponing retirement a practical strategy for workers who don't yet feel financially ready."

She recommended using those additional working years strategically by reassessing retirement goals, adjusting timelines and strengthening savings before leaving the workforce.

For Gen X workers who feel behind, even small adjustments made in the years leading up to retirement can help improve retirement readiness and provide greater financial flexibility later on. As inflation continues to pressure household budgets, many Gen Xers are focusing on practical steps they can take now to improve their chances of a more secure retirement.

This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.

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Written by

Gabrielle Olya

Edited by

Cory Dudak