The study highlights a gap between what Gen Xers think they’ll need to retire comfortably and what most have actually saved
Mortgage anxiety is rising among Generation X as new research reveals more than half doubt they’ll be financially ready for retirement. The 2025 Planning & Progress Study from Northwestern Mutual found 54% of Gen Xers—those born between 1965 and 1980—believe they won’t be prepared for retirement when the time comes. The study highlights a gap between what Gen Xers think they’ll need to retire comfortably ($1.57 million) and what most have actually saved, with the most common response being just twice their annual income.
Mortgage payoff and financial blind spots
Paying off a mortgage is a top concern for 25% of Gen Xers, outpacing Boomers+ (18%).
Half of Gen Xers admitted they’ve “placed too much emphasis on building wealth without dedicating enough to protecting their assets”—a blind spot that could leave many exposed as retirement nears.
Similarly, Truework's survey based on 1,000 Americans previously found that first-time homebuying process is proving more difficult for 19% of Gen X.
“Growth without protection can leave people vulnerable,” said Jeff Sippel, chief strategy officer at Northwestern Mutual. “Especially as you get older, safeguarding what you’ve built is just as critical as continuing to build. A holistic plan should account for both.”
Working longer, worrying more
Nearly half (48%) of Gen Xers expect to work during retirement, with most citing necessity rather than choice. The study also found that 35% of Gen Xers lose sleep at least once a month over financial uncertainty, and 56% worry they’ll outlive their savings, a higher rate than Boomers (14%).
“Many Gen X’ers are juggling responsibilities on both ends, supporting aging parents while still helping their children,” Sippel said. “They’re feeling the pressure of being part of the sandwich generation."
A 2022 AAG study revealed that more than half of Gen X adult children do not have enough money to help their senior parents. The study also found that 55% of adult children said they are not financially prepared to care for their parents in a time of need.
"They’re also the first generation to truly feel the impact of the move from defined benefit plans to defined contribution plans. All of this puts more of the burden of financial planning on their shoulders," Sippel added.
Despite these pressures, only 33% of Gen Xers work with a financial advisor, compared to 43% of Boomers+.
A Money.com.au survey revealed that 6% of first-home buyers admitted they regret taking loan advice from their parents or family members, particularly when well-meaning relatives steer buyers towards outdated loan products, non-competitive lenders, or emotionally-driven decisions.
Gen X’s struggle to balance debt, savings, and family obligations signals a need for tailored lending and advisory solutions. With one in four Gen Xers worried about paying off their mortgage, and many expecting to work longer, lenders may see increased demand for refinancing, reverse mortgages, and flexible repayment options.
