Why Gen X Investors Need Financial Advice Now More Than Ever

While Gen X is more likely than other generations to have a top financial goal of caring for family,¹ the ‘Forgotten Generation’ is also trying to prioritize their own needs at the same time. This resilient yet underserved group is facing a critical moment — and advisors can step in and make an impact.

For much of their lives, Generation X (Gen X) — born between 1965 and 1980 — has flown under the radar. Independent, entrepreneurial, and resourceful, the original latchkey generation developed a strong sense of self-sufficiency. But, today their financial lives are more complex than ever as they balance eldercare responsibilities, financial support for children, and their own retirement planning.

These challenges present a unique financial puzzle that demands strategic financial guidance. More than half of Gen Xers provide financial support to elders and children,² and the oldest Gen Xers are becoming eligible for penalty-free retirement withdrawals.³ For advisors, now is the time to step in and make a meaningful impact.

The Gen X Opportunity: Competing Priorities and Wealth in Motion

Often called the Forgotten Generation, Gen X numbers 65 million individuals in their peak earning years,⁴ so the potential to grow their wealth is significant. Yet competing priorities can make achieving their financial goals a bit trickier than for other generations. Advisors have an opportunity to help simplify complex financial topics, establish realistic goals, and align Gen Xers’ priorities with their evolving financial realities.

Additionally, between 2024 and 2048, $124 trillion of wealth is expected to transfer.⁵ Gen X is expected to inherit $39 trillion of that, with nearly $14 trillion changing hands in the next 10 years alone.⁶ This wealth transfer represents a critical opportunity for advisors seeking to grow their practices.

Understanding the unique challenges and motivations of this often-overlooked generation is the first step to building meaningful relationships with them and delivering long-term value. By proactively engaging with Gen X clients today, you can establish yourself as a trusted partner during this transition, helping clients have more open conversations with their family about money to better manage and grow wealth across generations.

Gen X Financial Concerns, And How Advisors Can Help

In 2025, Gen X finds itself at a pivotal financial moment. The youngest Gen Xers, at 45, are balancing peak career demands with retirement planning. The oldest Gen Xers, at 60, are taking critical steps toward retirement readiness. Supporting aging parents while raising children further complicates their efforts to secure financial stability.

Many Gen Xers entered the workforce during troubling economic periods and faced challenges from the dot-com bubble and the Global Financial Crisis, which disrupted career trajectories and slowed wealth accumulation compared to baby boomers.

Today, Gen X’s financial concerns are amplified by lingering economic turbulence.⁷ While inflation has cooled, elevated prices strain purchasing power, threatening wealth preservation. For high-net-worth (HNW) investors, the Federal Reserve’s rate hikes tempered inflation but raised borrowing costs, complicating credit strategies. Ongoing market volatility underscores the need for inflation-protected investments, portfolio diversification, and strategic retirement planning. And Gen X’s concerns and priorities reflect this backdrop.

Wealth Preservation Is a Concern

Over one-third of Gen X investors express low optimism about their financial outlook, reflecting these economic pressures, according to our 2024 Influential Investor Segment Study.⁸ Top concerns include rising inflation, economic uncertainty, and market volatility (Figure 1).

For HNW Gen X investors, these pressures are compounded by their role as primary breadwinners and their reliance on loan-based asset ownership, such as home mortgages. At the same time, securing sufficient retirement savings and managing rising healthcare costs remain pressing priorities. And, their inflation concerns highlight the need for tailored investment strategies to preserve wealth.

How you can help: Help investors address the balancing act of competing priorities.

Gen Xers are stretched thin — balancing caregiving for aging parents, supporting their children, and planning their own financial future. To align with HNW Gen X clients’ goals and help them mitigate risks like inflation erosion and sequence risk, consider implementing:

• Advanced strategies such as inflation-resilient investment options tailored to market conditions,
• Dynamic portfolio construction that integrates alternative asset classes, and
• Customized retirement income planning frameworks.

Team-based advisory structures and enhanced services position practices as one-stop-shop providers that can address clients’ needs holistically.

Focus on Retirement Planning

In contrast to their parents, Gen Xers began their careers during a time of shifting retirement benefits. Traditional pension plans were disappearing, while defined contribution plans like 401(k)s were still in their infancy, leaving many without clear pathways to long-term retirement savings.

With limited market growth from 2000 to 2010, many Gen Xers today lack confidence in their retirement readiness.⁹ Retirement planning remains the dominant priority for this generation, with 8 in 10 citing it as their primary financial goal.¹⁰ Among those already working with advisors, 71% report retirement savings planning as their most utilized financial service (Figure 2).

However, competing priorities add layers of complexity to their financial landscape. Despite their focus on financial security, less than one-third of advised Gen X investors receive advanced planning services. Even fewer benefit from coaching to support more confident decision-making.¹¹

How you can help: Redefine retirement planning and simplify decision-making.

For Gen X, retirement represents more than a financial transition — it’s a major life shift. Advisors can help by offering strategies to mitigate risks, ensure income longevity, and align plans with personal goals. This can help turn clients’ anxieties into actionable outcomes.

Trust remains a key barrier for Gen X. By offering a more collaborative approach and actionable insights — for example, retirement income projections or stress-tests on portfolios — as well as measurable outcomes like tax-efficient withdrawal strategies, advisors can demystify complex choices and empower clients to make informed and confident decisions.

Convey the Value of Guidance to Self-directed Gen Xers

For the 50% of Gen Xers who are self-directed investors, perceived fee value and a desire for control often deter them from seeking advice. Among this group of investors, 45% say they don’t work with an advisor because they don’t think advisors are worth the fees, and 44% prefer to have full control.¹²

Yet, these same investors report lower satisfaction with portfolio performance compared to their advised peers, largely due to the absence of personalized guidance and strategic oversight (Figure 3).

This dissatisfaction underscores the need for advisors to emphasize the tangible benefits of a collaborative relationship. By tailoring your service model to address common pain points of self-directed investing — such as navigating market volatility, achieving balanced diversification, and creating long-term financial strategies — you can attract and retain these clients and transform initial skepticism into trust and loyalty.

How you can help: Provide comprehensive support beyond investment management.

Gen X investors seek guidance on aspects of their financial lives too often overlooked, such as healthcare costs, caregiving responsibilities, and legacy planning. These are challenges where self-directed platforms fall short, making personalized advisor support vital.

A holistic approach that integrates these priorities, coupled with technology-driven resources like portfolio analytics or financial modeling tools, can reinforce the value of advice and address gaps digital tools alone can’t fill. These solutions help ensure alignment with long-term goals and help clients navigate today’s uncertainties.

Meet Gen X Investors Where They Are

For advisors, Gen X represents an ideal client segment because they’re in their peak earning years, are close to retirement, and have complex financial needs where advisor guidance can be valuable. By aligning your services with Gen X’s unique needs — balancing their pragmatism with personalized solutions tailored to long-term objectives — you can build enduring relationships. And, these relationships can evolve through key life transitions.

With Gen X investors, advisors have an opportunity to deliver value beyond just alleviating immediate financial concerns. Now is the time to act decisively to position your practice as the go-to partner for this high-potential generation, to show the value you can bring and ensure your place in their financial journey.

Explore our practice management insights for more ideas on how to propel your practice forward.