A number of Gen Xers are financially, emotionally and physically supporting their kids and their aging parents, leaving their security in retirement fragile.Supplied
Gen X is worried about retirement.
A recent survey by Manulife revealed that while age 65 is right around the corner for a significant portion of this demographic group – born between 1965 and 1980 – many have serious concerns about whether they’ll ever be able to stop working.
Survey respondents in Manulife’s 2025 report, The 40-year retirement – balancing dollars and dreams, were blunt about their outlook:
“Having enough money to retire and be able to help our kids with their first homes and weddings is going to be impossible.”
“[I worry about] putting my daughter through university while expenses keep rising and wages don’t.”
“There is no way I will ever be able to save enough to retire.”
“I can’t even think that far ahead.”
These views reflect the challenges of being in the “sandwich generation,” says Marc-Antoine Morin, head of member engagement at Manulife. A number of Gen Xers are financially, emotionally and physically supporting both their kids and their aging parents, which can often mean their own needs are shunted to the side, leaving their security in retirement fragile.
The Manulife survey found that 63 per cent of Gen Xers are financially supporting their family and nearly a third have less than $50,000 set aside in retirement savings accounts.
With so many competing responsibilities, “It’s not going to be easy to find the time or the money to focus on retirement. So, it can be a real emotional and financial juggling act for that generation,” Mr. Morin says.
“Add rising costs and inflation on top of that with higher interest rates, which is putting some pressure on debt, and it’s not a very pretty sandwich.”
Plan for more years in retirement
Longevity and outliving their money in retirement is a concern for Gen Xers, but it can be hard for them to wrap their heads around this concept when they’re dealing with current financial challenges, Mr. Morin says.
Manulife’s survey highlights these difficulties: Only 38 per cent of Gen X said they have a formal plan for retirement, 51 per cent feel their retirement savings are behind schedule, 56 per cent say their debt is a problem and half of respondents worry about the rising cost of living.
With all these challenges in mind, Gen Xers need a plan, Mr. Morin says.
“Without a plan, Gen Xers might face more financial stress than other generations while in retirement.”
Canadians are living longer, he adds, so retirements could last 30 or 40 years, perhaps even longer than individuals were in the working world. Forty-four per cent of retirees surveyed for the Manulife report said they retired earlier than expected, at an average age of 56. Meanwhile, the number of people over age 100 has more than doubled in the last two decades.
“You may need to plan for more years in retirement,” Mr. Morin says. “That may have consequences for you as an individual, but if you’re a caretaker for your parents, the longevity challenges might also reflect on the people you’re taking care of.”
Gen Xers can alleviate some of their financial anxiety by taking a thorough look at their financial situation, Mr. Morin says.
“[It’s about] understanding where you stand and where you’re going, and then figuring out some actionable items along the way,” he says. That might involve prioritizing your retirement savings and incrementally increasing them over time. It might involve formulating a budget and reducing high-interest debt, if that’s an issue, and examining investment opportunities.
“It doesn’t need to be an overnight, life-changing type of action, just one step at a time,” he adds.
‘Advice is essential’ when complexity is high
If those steps sound daunting, there is help available, Mr. Morin says. Seeking out advice from financial professionals, whether through your employer or on your own, can help you create a comprehensive plan and reduce anxiety, Mr. Morin says.
“Advice is essential in particular for Generation X, because complexity is high.” There are a lot of decisions to be made and competing goals to be considered, he adds, including paying down debt versus saving or funding retirement versus paying for children’s education.
“A financial professional can help answer these questions in a way that can help you be better off now and in the future.”
Read the full report at manulifeim.ca/retire/financialresilience
Advertising feature produced by Globe Content Studio with Manulife. The Globe’s editorial department was not involved.