Gen X Workers Staring Down a ‘Retirement Crisis,’ Apollo Chief Economist Warns

Inflation, a lack of savings, and depleted Social Security reserves are adding to fears over retirees’ financial future.

A sign in Columbia, Md., on July 21, 2025. Madalina Kilroy/The Epoch Times

A wide array of factors is leading Generation X U.S. workers to face a looming “retirement crisis,” said Torsten Slok, chief economist at Apollo Global Management.

One factor is that fewer than one in six U.S. workers aged 45 to 54, an age range squarely in the Gen X category, contributed the maximum to their 401(k) accounts for 2024, according to data from Vanguard’s “How America Saves 2025” report.

This year, the employee contribution limit on 401(k)s is $23,500, up from $23,000 in 2024. Those aged 50 to 59 can throw an additional $7,500 into these retirement accounts.

But other factors are also playing a role in deteriorating retirement circumstances, according to Slok.

“Coupled with rising costs, inadequate savings and the looming depletion of the Social Security trust fund, these factors underscore a retirement crisis in the US, requiring many households to boost their savings to achieve stable and sufficient income in retirement,” he said in a note emailed to The Epoch Times.

Americans generally estimate that they need more than $1 million to retire comfortably, according to a study conducted this year by Northwestern Mutual.

Gen X workers might still have some ways to reach this target. However, in recent years, research has revealed that many workers in this demographic are approaching retirement lacking the necessary savings and investments.

Vanguard’s annual study notes that the average savings balance for Gen X in 2024 was $188,643.

On a median basis, the overall net worth for this age bracket—typically considered workers’ peak earning years—is $247,200, based on the Federal Reserve’s recent triennial Survey of Consumer Finances.

Northwestern Mutual’s findings show that 52 percent of Gen X workers have saved three times their current annual income or less.

From a paucity of savings to concerns about Social Security, it may not be surprising that Gen X is the generation least confident that it will have enough saved to retire, according to Betterment at Work’s fifth annual Retirement Readiness Report.

Feeling Insecure About Social Security

The Social Security system’s finances have been deteriorating.

According to an updated estimate in the June 2025 trustees report, the system’s reserve is projected to be insolvent by 2033. Although Social Security benefits will remain available to retirees, payments will be reduced by 23 percent.

Additionally, the fund used to cover disability benefits is expected to run out of money by 2034, resulting in a 19 percent cut in benefits.

In 2024, the average monthly Social Security payment for all beneficiaries was $1,783. For retired workers, the average was $1,920 per month.

This is not good news for the 61 percent of unretired Gen X workers who expect Social Security benefits to cover necessary expenses once they leave the workforce.

For years, experts have been calling for reforms to ensure Social Security’s long-term survival.

The Social Security Administration building in Waycross, Ga., on Aug. 28, 2024. Madalina Vasiliu/The Epoch Times

“Lawmakers should pursue trust fund solutions to restore solvency and make other improvements,” the Committee for a Responsible Federal Budget, an independent policy organization, said in an August report.

“But the most important solution is political will. Politicians need to be honest with the public on the challenges the program faces and what it will take to ensure the program can pay full benefits past the age of 100. Time is running out.”

Many Gen Xers are skeptical that lawmakers will address the issue.

An AARP survey this past summer indicated widespread distrust among Gen Xers in the government’s ability to uphold its commitments, with many believing that Social Security’s funds are “running out.”

Sweet Bird of Youth

Millennials, those aged 29 to 44, still have many years before they reach retirement age. So far, they have fallen behind on building a nest egg for their winter years.

For the older millennial cohort, aged 35 to 44, just 14 percent contributed the maximum to their 401(k)s in 2024 and maintain less than $40,000 in these accounts.

One in five millennials has less than their annual income saved and only 45 percent have saved three times their income or more, according to Northwestern Mutual. About one-third (34 percent) believe that it is unlikely they will outlive their savings.

Additionally, 45 percent say they will continue working during their retirement years, with one-third planning to work full time at a different job.

“For many Americans, the definition of retirement seems to be changing from ’retiring from work‘ to ’finding a role that’s more meaningful to me,'” John Roberts, chief field officer at Northwestern Mutual, said in a statement.

“Instead of golf, cruise boats and cocktails, large percentages see themselves employed at an organization or a cause that they believe in.”

Millennials ostensibly agree that their finances are not terrific, with Manulife John Hancock Retirement reporting that 53 percent of millennials rate their finances as fair or poor.

Still, despite the numbers, millennials appear more optimistic about their finances—either now or in the year ahead—than their older generational counterparts.

A new Bankrate survey found that 40 percent of millennials believe that their finances will improve next year, compared with 31 percent of Gen Xers and 25 percent of baby boomers.