AskMrBen

As first-wave Gen X neared retirement, many faced shifting from building savings to creating reliable income, often without pension backstops earlier generations more commonly had.
Retirement anxiety stretched beyond markets. Rising health care costs ranked as the top concern, while consumers reported more economic uncertainty than financial professionals.
Among ages 55–60, 28% were highly concerned lifetime income would last, versus 14% of Boomers. Without pensions, 56% reported pension envy versus 44%.
Financial strain looked sharper for Gen X nearing retirement: 48% expected to return to work after retiring because of money concerns, versus 21% of Boomers.
A planning gap stood out. While 61% prioritized protecting assets over growth, 38% lacked a specific retirement income plan despite working with a financial professional.
Concern about Social Security also stayed elevated, with 69% of consumers worried it would not provide full benefits for the rest of their lives.
The surve

Gen X Near Retirement Feels Uneasier

Taxes on dividends, gains, and interest quietly reduced real returns over time, even when portfolios looked strong and balances kept climbing.
The analysis said layering tax-smart strategies added ~1.6% yearly after-tax returns, producing nearly 73% more gains across a 20-yr horizon.
On a $500K portfolio earning 8% before taxes, that gap meant roughly $2.3M versus $1.3M after two decades.
The tax law changed on July 4, 2025, but tax drag remained. Lower permanent rates did not stop taxable accounts from steadily losing returns.
First defense: maximize 401(k), IRA, and HSA contributions. A hybrid of traditional and Roth accounts could improve long-term flexibility, depending on retirement tax brackets.
In taxable accounts, direct indexing enabled tax-loss harvesting, while municipal bonds and asset location helped shield fixed-income returns from ordinary income taxes.