Gen Xers fret over Social Security. "I will likely be working in retirement."

Gen Xers are growing increasingly anxious about their retirement prospects as they approach the eligibility age for Social Security benefits. With many lacking sufficient personal savings, the program is now viewed by this cohort as their primary, if not sole, source of income in retirement. Chris Branaman, a 53-year-old IT professional from Michigan, jokingly remarked that his retirement plans involve working as a Walmart greeter.

However, his retirement savings of around $100,000 in a 401(k) plan are unlikely to be sufficient, even with additional contributions over the next decade.

The shift from traditional pensions to 401(k) plans in the 1980s and 1990s has left Gen Xers shouldering the responsibility for their own retirement planning. This transformation has resulted in many Americans falling short of the savings needed to sustain their quality of life during retirement. The projected funding shortfall in Social Security by 2032 could exacerbate the situation, potentially triggering benefit cuts just as Gen Xers are poised to retire.

Factors contributing to Gen Xers' concerns include the lack of automatic enrollment in retirement plans during their early working years and limited access to retirement benefits at times in their careers. Personal crises, such as job loss and divorce, have also forced some to deplete their retirement funds. Jessica Espinoza, managing director at NFP, a financial services firm, emphasized the daunting nature of this situation, noting that most Gen Xers have had to rely solely on their own savings, without the safety net of pensions that earlier generations enjoyed.

The stark reality is that Social Security and personal retirement savings will likely form a two-legged stool to support their retirement, and many Gen Xers are finding it hard to catch up.