Gen Xers are dangerously close to retirement — and yet 40% of them don’t even have a retirement account. How to shift your savings into a higher gear

But the forgotten generation didn’t just forget to save. They’ve faced real challenges. After all, they became adults during periods of economic uncertainty, including the dot-com crash, the Great Recession and more recent inflation pressures.

And, now, the pressure is on.

Why so many Gen Xers are behind on retirement savings

Gen Xers don’t have as many years left to build wealth, and at the same time many of them are juggling mortgages, debt, childcare and expenses to care for aging parents. In fact, they’re often also referred to as the “sandwich generation,” caught between supporting children while also helping older relatives. Some have even put off retirement to help support their adult children, according to AARP.

Unlike many older workers who had traditional pensions, Gen X is the first generation to rely heavily on employer-sponsored defined contribution plans like 401(k)s, as well. That has shifted more of the responsibility onto them for saving, making it even more difficult.

For some, the biggest obstacle has been simply getting started. Without access to an employer-sponsored plan, or without enough income left after everyday expenses, saving towards a solid financial foundation can end up falling down the list of priorities.

The result? Many workers getting close to retirement age may have little more than Social Security on which to rely.

That’s why, according to research by Fidelity, the average amount a Gen X adult has saved is roughly $215,000.

And for those who do have retirement accounts, balances can vary dramatically. A person who starts saving late may struggle to catch up because they have missed decades of potential investment growth and compounded returns.

How to boost your retirement savings in your 50s and 60s

Workers in their 50s and early 60s still have options to strengthen their retirement outlook.

1. Max out workplace retirement contributions when possible.

For workers with access to a 401(k), increasing contributions, even gradually, can make a difference. At a minimum, the United States Department of Labor recommends contributing enough to take advantage of any employer match, which is essentially free money toward retirement.

2. Take advantage of catch-up contributions.

Once workers reach age 50, IRS rules allow higher contribution limits for many retirement accounts, including 401(k)s and individual retirement accounts (IRAs). These catch-up provisions are designed to help people who are behind accelerate their savings during their final working years.

3. Consider opening an IRA.

For workers without an employer retirement plan, an IRA can provide a tax-advantaged way to save. Traditional and Roth IRAs have different tax treatments, so choosing the right option depends on factors such as income, current tax rates and future retirement plans.

4. Revisit spending and retirement timelines.

For some Gen Xers, the solution could involve adjusting expectations. Put together a realistic budget, and consider whether you’ll need to work a few extra years, downsize your home, reduce debt before retirement or even create a phased transition into retirement.

5. Don’t ignore Social Security planning.

Social Security may become an important part of retirement income, but the timing of when you claim benefits can make a difference to your monthly payments. Delaying benefits until age 70 can increase monthly payments, if you are able to wait.

The retirement clock may be ticking for many Gen Xers, but when it comes to saving, it’s better late than never. Taking action now to increase savings, reduce debt and create a realistic retirement plan can be key to building your retirement future.