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Gen X is facing a retirement crisis, reports show

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9 months ago

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Chevy Chase makes CNBC's Financial Advisor 100 list

Most working adults feel behind when it comes to their retirement savings.

But when broken down by generation, Gen Xers are the least financially prepared generation for retirement by nearly every measure, according to a new research paper by Alliance’s Retirement Income Institute.

“While Baby Boomers dominate the headlines, Generation X faces an even greater retirement crisis,” the authors wrote.

The so-called sandwich generation is the most likely to be supporting both children and aging parents at the same time, the paper found. They’ve experienced eight recessions over their lifetimes and witnessed soaring education, health care and housing costs. Many must now contend with large mortgage and car payments, along with student loan debt, while also balancing greater family responsibilities.

“We’ve held the traditional family values of our parents, but it has maybe robbed us of starting to save for retirement earlier than we might have,” said Ryan Sheffer, a financial adviser at Advance Capital Management in Southfield, Michigan, which is ranked No. 72 on this year’s CNBC Financial Advisor 100 list. 

Rethinking the ‘three-legged stool’

“There are some macro challenges and, of course, the micro challenges,” said Jason Fichtner, the Retirement Income Institute’s executive director and co-author of the report.

Gen X is the age group — roughly defined as those born between 1965 and 1980 — heavily impacted by the shift from defined benefit to defined contribution pensions, as workplace pensions became less common. Only 14% of Gen X workers have a traditional pension compared with 56% of boomers, according to the Retirement Income Institute.

These days, a successful retirement strategy entails “rethinking the three-legged stool of retirement planning,” Fichtner said, which traditionally included employer pensions, Social Security and personal savings. “Now that pension plan is your 401(k) and that has to generate additional protective income,” he said.

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At the same time, Social Security is running low on funding. The trust fund Social Security relies on to pay retirement benefits may be depleted in 2033, according to this year’s report by the Social Security Board of Trustees. At that point, 77% of those benefits will be payable, the trustees projected, unless Congress intervenes to shore up the program.

“I will be eligible for Social Security the year the trust fund is depleted,” said Fichtner, who is also a former deputy commissioner at the Social Security Administration appointed by President George W. Bush. “It becomes a personal issue as well.”

The risk of outliving your savings

Pixdeluxe | E+ | Getty Images

With fewer safety nets, Gen Xers are at a disadvantage, other reports also show.

As it stands, the typical Gen X household had just $40,000 in retirement savings, according to a 2023 report by the National Institute on Retirement Security.

Overall, 69% of Gen X workers said they were behind on their retirement savings, including 47% who said they were “significantly behind” — more than any other generation, according to a separate retirement report by Bankrate released last month.

“Looking across the generations and a variety of income levels, a key challenge for Americans and their retirement savings is to align their contributions with their realistic long-term needs,” Bankrate’s senior economic analyst, Mark Hamrick, said. 

Compared with 62% of boomers, only 41% of Gen Xers believe their savings will last for the duration of their retirement years, the Retirement Income Institute also found.

With less money set aside, having enough to last for the remainder of their lifetimes is a huge concern, Fichtner said. “Over half think they are going to run out.”

How to set a retirement savings goal

Most experts recommend consulting with a financial professional to get on track. They can help you set a realistic goal and determine the steps you need to take to meet it.

“Don’t be afraid to pick up the phone,” Sheffer said. Reaching out to a financial advisor who can “diagnose, analyze and prescribe” is a good first step.  

“Get a plan in place and work to achieve it,” he said. “The sooner the better.”

Too often, emotional “paralysis” prevents people from facing their financial reality, said Suzanne Norman, a director at the Retirement Income Institute who also co-authored the report.

“If you don’t know where you are, how do you know how to get where you are going?” she said.

There are still many options for those concerned about their retirement security, she added, including potentially working longer or pursuing a second act in retirement.

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Personal Finance

$20,000 Caution Bond Requirement for US Visa Applications imposed on 50 Countries

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6 days ago

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August 8, 2026

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The United States Department of State has officially implemented a revised visa policy introducing a mandatory posting requirement for caution payments of up to $20,000 on select foreign travel applications. Under the updated regulatory framework, consular officials are authorized to require temporary nonimmigrant visa applicants from targeted foreign countries to post a refundable financial bond of $20,000 as a condition for visa issuance. The policy mechanism is designed to address diplomatic concerns regarding high overstay rates among temporary visitor, business, and educational visa categories.

The caution bond pilot program applies selectively to foreign nationals from designated countries whose diplomatic entities record historical visa overstay rates exceeding established federal thresholds. Under administrative guidelines published by the State Department, the full financial deposit is posted directly to a dedicated federal escrow account prior to final visa issuance. The entire caution payment is automatically refunded to the applicant upon verified proof of timely departure from the United States in strict compliance with the authorized duration of stay. Conversely, failure to depart within the legal timeframe results in full forfeiture of the posted financial bond to the United States government.

Diplomatic representatives and travel policy experts have expressed varying perspectives regarding the operational implementation of the caution bond system. Administration officials emphasize that the measure serves as an effective, market-based incentive to enforce international travel compliance and preserve domestic immigration security standards. However, international trade organizations and foreign diplomatic missions have raised concerns regarding the financial burden imposed on legitimate business travelers, foreign students, and commercial partners from developing nations.

The United States finalized the rule to make the temporary visa bond program permanent, taking effect on August 3, 2026. The updated permanent regulation replaces the prior 12-month pilot, eliminates the lowest $5,000 tier, and raises the maximum required bond amount to $20,000 for specific B-1/B-2 business and tourist visa applicants.

Here is the list of the 50 countries on the list as o August 3, 2026

African Nations (31 Countries)

  • Algeria
  • Angola
  • Benin
  • Botswana
  • Burundi
  • Cabo Verde (Cape Verde)
  • Central African Republic
  • Côte d’Ivoire (Ivory Coast)
  • Djibouti
  • Ethiopia
  • Gabon
  • The Gambia
  • Ghana
  • Guinea
  • Guinea-Bissau
  • Lesotho
  • Malawi
  • Mauritania
  • Mauritius
  • Mozambique
  • Namibia
  • Nigeria
  • São Tomé and Príncipe
  • Senegal
  • Seychelles
  • Tanzania
  • Togo
  • Tunisia
  • Uganda
  • Zambia
  • Zimbabwe

Asian & Eastern European Nations (11 Countries)

  • Bangladesh
  • Bhutan
  • Cambodia
  • Georgia
  • Kyrgyzstan
  • Mongolia
  • Nepal
  • Papua New Guinea
  • Tajikistan
  • Turkmenistan
  • Uzbekistan

Caribbean & Latin American Nations (5 Countries)

  • Antigua and Barbuda
  • Cuba
  • Dominica
  • Grenada
  • Venezuela

Oceanian Nations (3 Countries)

  • Fiji
  • Tonga
  • Vanuatu

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Personal Finance

Next-Generation Retirement Planning: Managing Longevity Risk and Variable Income Streams

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1 week ago

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August 7, 2026

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Retirement planning strategies are evolving in 2026 to address increased life expectancies, shifting dynamic market conditions, and the transition away from traditional defined-benefit pensions. Individual investors and financial advisors are abandoning rigid retirement models in favor of flexible, multi-asset strategies designed to mitigate longevity risk and preserve purchasing power over multi-decade retirement horizons.

Mitigating Longevity Risk with Dynamic Asset Allocation
As average life expectancies extend past eighty-five years, one of the primary financial risks facing retirees is outliving their accumulated wealth. Traditional fixed income allocations—such as the standard 60/40 equity-to-bond portfolio—are being reevaluated to ensure portfolios generate sufficient capital growth alongside reliable income.

Financial planners recommend maintaining a meaningful equity allocation throughout retirement to offset long-term inflation erosion. High-dividend equity funds, global real estate investment trusts (REITs), and inflation-indexed Treasuries are combined to create diversified portfolios that deliver both growth and income stability.

The Transition to Dynamic Withdrawal Strategies
The classic “4% safe withdrawal rule” is increasingly replaced by dynamic withdrawal strategies that adapt annually based on market performance. Under a dynamic withdrawal framework, retirees adjust their annual distribution rates within pre-set caps and floors:
– Market Upside: During strong market returns, retirees can increase discretionary spending or fund family legacy gifts.
– Market Downturns: During market pullbacks, spending distributions are temporarily reduced to prevent sequence-of-returns risk and preserve core investment principal.

Guaranteed Lifetime Income Options and Deferred Annuities
To establish a guaranteed baseline for essential living expenses, individuals are incorporating modern fixed-indexed and deferred longevity annuities into their broader retirement architectures. Modern annuity structures offer competitive return caps, transparent fee schedules, and inflation-adjustment options.

By funding essential expenses—such as housing, healthcare, and insurance—with guaranteed income streams from Social Security, pensions, and annuities, retirees can manage discretionary investment portfolios with greater flexibility and lower emotional stress during market volatility.

Actionable Steps for Future Retirees
1. Calculate Baseline Retirement Expenses: Determine fixed living costs and map guaranteed income sources to cover essential expenditures.
2. Adopt Flexible Withdrawal Rules: Implement dynamic spending rules to protect investment principal against market downturns.
3. Incorporate Inflation-Protected Assets: Maintain exposure to dividend-growing equities and inflation-indexed bonds to safeguard long-term purchasing power.

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Personal Finance

Building Generational Wealth: Family Governance, Estate Tax Optimization, and Asset Protection

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2 weeks ago

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August 1, 2026

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As the largest intergenerational transfer of wealth in history accelerates, high-net-worth families, entrepreneurs, and individual investors are placing heightened emphasis on comprehensive estate planning, family governance, and asset protection. Preserving capital across generations requires a balanced approach combining tax-efficient legal structures with open family communication and financial literacy education.

Optimizing Estate Tax Exemptions and Trust Structures
With potential modifications to federal estate tax exemption thresholds on the horizon, proactive estate planning is essential for high-net-worth households. Estate planning attorneys and wealth advisors are establishing multi-generational trust structures to transfer wealth efficiently while minimizing estate and gift tax exposure.

Popular structural strategies include:
– Irrevocable Life Insurance Trusts (ILITs): Utilizing life insurance proceeds to provide liquidity for estate tax obligations without expanding the taxable estate.
– Grantor Retained Annuity Trusts (GRATs): Transferring rapidly appreciating assets to beneficiaries with minimal gift tax consequences.
– Dynasty Trusts: Preserving wealth across multiple generations while providing long-term asset protection from creditor claims and legal liabilities.

Establishing Family Governance and Financial Education
Legal and financial structures alone cannot guarantee long-term wealth preservation without effective family governance. Financial advisors report that a significant percentage of multi-generational wealth dissipation stems from lack of communication and inadequate financial preparation among heir generations.

Families are establishing formal family governance frameworks, including periodic family meetings, written mission statements, and structured philanthropic foundations. Involving younger family members in charitable grant-making and investment discussions fosters financial stewardship and prepares heirs to manage family assets responsibly.

Digital Asset Custody and Legacy Planning
In today’s modern economy, estate planning must extend beyond physical real estate and traditional brokerage accounts to encompass digital assets. Comprehensive estate plans now include detailed inventories and legal access protocols for corporate domain names, intellectual property, digital media rights, and cryptocurrency holdings.

Fiduciaries and estate executors should be provided with secure, encrypted access mechanisms and clear legal authority to manage and transfer digital holdings in accordance with the owner’s estate directions.

Practical Steps for Legacy Planning
1. Review and Update Estate Documents: Ensure wills, revocable trusts, and power-of-attorney designations accurately reflect current family structures.
2. Establish Structured Trusts: Utilize irrevocable trusts to protect assets from creditors and minimize future estate tax liabilities.
3. Create a Digital Estate Inventory: Document access protocols and legal permissions for all online accounts, intellectual property, and digital assets.

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