Are You on Track for Retirement? Many Gen Xers Aren’t — But It’s Not Too Late

A recent study from Northwestern Mutual (link at bottom of page) reveals that half of Gen Xers (ages 45–60) have saved only three times their annual income for retirement—well below Fidelity’s recommended benchmark of six times by age 50 for those aiming to retire at 67.

While that six-times ﬁgure isn’t a one-size-ﬁts-all target, it highlights a broader issue: many Gen Xers are behind on their retirement savings. And yet, everyone’s retirement vision is different. Some plan to travel or buy a second home. Others envision a quieter, simpler lifestyle. That’s why a personalized retirement income plan is more important than any generic rule of thumb.

In my work as a ﬁnancial advisor, I often hear people say, “I just invest and hope it works out.” But hope isn’t a strategy—especially if your goals involve more than just getting by.

Start with the End in Mind

“Simplicity is the ultimate sophistication.” —Leonardo da Vinci

Planning for retirement doesn’t have to be complicated. Start by identifying your target retirement date and estimating how much income you'll want in retirement. From there, work backward to determine what you’ll need to save and invest.

Here’s a basic example:

Current age: 50
Current income: $100,000
Estimated annual raise: 3%
Projected income at 67: $155,796

Assuming you'll need 70% of that in retirement, your target annual income is about $109,000. In this example we will assume that Social Security will provide $36,000 annually, therefore, you’ll need to ﬁll a gap of about $73,000 from your savings. With $300,000 already saved, contributing $6,000 per year, and assuming a 7% return, you might have around $978,000 at age 67. Following the 4% withdrawal rule, that gives you about $39,000 per year, leaving a shortfall of roughly $34,000.

What Can You Do?

The good news: you still have options.

Work a few years longer
Increase contributions
Adjust spending
Revisit your investment strategy

Most importantly, have a plan—and review it every year or two. Assumptions change. Markets shift. But with a plan in place, you can adapt and move forward conﬁdently.

Our team is here to help you build a plan that works for your goals—not just the averages.

References:

Northwestern Mutual. (2025, May 31). Planning & Progress Study 2025. https://news.northwesternmutual.com/planning-and-progress-study-2025

CNBC. (2025, May 31). How much money you should have saved by 50. https://www.cnbc.com/2025/05/31/how-much-money-you-should-have-saved-by-50.html

The information given herein is taken from sources that IFP Advisors, LLC, dba Independent Financial Partners (IFP), IFP Securities LLC, dba Independent Financial Partners (IFP), and its advisors believe to be reliable, but it is not guaranteed by us as to accuracy or completeness. This is for informational purposes only and in no event should be construed as an offer to sell or solicitation of an offer to buy any securities or products. Please consult your tax and/or legal advisor before implementing any tax and/or legal related strategies mentioned in this publication as IFP does not provide tax and/or legal advice. Opinions expressed are subject to change without notice and do not take into account theparticular investment objectives, financial situation, or needs of individual investors. This report may not be reproduced, distributed, or published by any person for any purpose without IFP’s express prior written consent.

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