Nirvana's Kurt Cobain once sang, “Here we are now, entertain us.” But for Gen X, now in their late 40s to early 60s, the refrain might be: “Here we are now, can we retire?”
The generation raised on mixtapes, MTV, and a healthy dose of skepticism faces a sobering reality — many are behind on retirement savings, especially in their 401(k)s and Individual Retirement Accounts (IRAs).
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Born between 1965 and 1980, Gen Xers are sandwiched between boomers and millennials and are often overlooked in financial narratives.
Yet they are now hitting critical milestones: The oldest are already eligible for catch-up contributions, and the youngest are entering their peak earning years.
The SECURE 2.0 Act has expanded opportunities for those aged 50 and older to supercharge their retirement accounts — but awareness and action remain low.
Generation X came of age during recessions, dot-com crashes, and housing bubbles. It has navigated student loans, aging parents, and kids heading to college — all while trying to build a nest egg.
Related: Tony Robbins sends warning message to Americans on IRAs, 401(k)s
Generation X has a 401(k) catch-up opportunity
In 2025, retirement savers aged 50 and older have expanded opportunities to boost their retirement savings through catch-up contributions.
For 401(k) plans, the standard contribution limit has risen to $23,500, with an additional $7,500 allowed for those 50 and older — bringing the total to $31,000.
A provision under the SECURE 2.0 Act introduces a significant change for people aged 60 to 63.
This group is eligible for a larger contribution, allowing an extra $3,750 beyond the standard catch-up, for a total of $11,250 in additional contributions.
That means individuals in this age bracket can contribute up to $34,750 to their 401(k) in 2025 — a notable increase from the $30,500 cap in 2024.
For IRAs, the contribution limits remain unchanged: $7,000 annually, with a $1,000 catch-up for those 50 and older, totaling $8,000.
While the IRA limits are modest by comparison, they still offer a valuable opportunity for tax-advantaged savings, especially for those without access to employer-sponsored plans.
These changes reflect a growing recognition of the retirement savings gap facing Gen X and older workers — and offer a good chance to make up ground before retirement becomes a reality.
Image source: Shutterstock
How Gen X can achieve maximum value in 401(k)s, IRAs
When it comes to retirement savings, personal finance author and radio host Dave Ramsey offers his take: Contribute 15% of your income.
Ramsey lays out a straightforward roadmap — start with a 401(k), especially if the employer offers matching contributions, and then use a Roth IRA to for the remainder of that 15%.
Roth IRA contributions are taxed now with tax-free withdrawals later; traditional IRA contributions are not taxed when made, but taxed upon withdrawal in retirement.
More on retirement:
- Tony Robbins shares retirement advice for Americans
- Dave Ramsey has blunt words for Americans on Medicare, Medicaid
- Jean Chatzky sends strong message on major 401(k) changes
Ramsey’s emphasis on growth stock mutual funds and disciplined investing reflects his broader philosophy of financial independence through consistency and long-term planning.
Personal finance author and media personality Suze Orman echoes the sentiment regarding Roth accounts.
“The one thing you can do every single day is get rid of your debt, increase your savings, make sure you're putting it all in a Roth retirement account,” she said. “Do not do a traditional retirement account and just keep on saving, saving, saving.”
Related: Dave Ramsey has blunt words for Americans on Medicare, Medicaid
Generation X can still catch up on retirement savings
Gen Xers who feel behind on retirement still have time to turn things around.
Experts agree that the key is starting now — no matter how small the first step. Contribute consistently to retirement accounts, take advantage of catch-up contributions, and consider delaying Social Security to boost future income.
They agree that focusing on long-term growth and staying disciplined are important. Every action taken today builds momentum toward a more secure future.
One thing personal finance experts advise is that it’s not about perfection — it’s about progress.
With clarity, commitment and a willingness to adapt, Gen X can still create a retirement that is stable and fulfilling.
Related: Shark Tank’s Kevin O’Leary bluntly speaks on Americans' 401(k)s
