hen Sara Spiegel launched her Brooklyn-based marketing agency in
2018, retirement was the furthest thing from her mind. She had student
loans and a business to grow. Now at 36, Spiegel contributes regularly to her Simplified Employee Pension (SEP) IRA, but is also juggling plans
to buy a home, potentially start a family and provide financial assistance to her aging parents.
The financial impact of family has weighed on her. “I should have an idea of what is in store, what my parents’ plans are and how much help they might need from me. I definitely think about it, as my husband and I are planning to move next year and potentially buy a house in the next three to five years. We might start a family, so that is obviously an expense,” she says.
Spiegel’s situation isn’t unique. Gen X and millennials face big challenges in saving for retirement while balancing other responsibilities: high housing prices, student loans, the price of raising kids, paying for the skyrocketing cost of education and, sometimes, supporting aging parents.
“There’s more responsibility on these generations to fund their own retirement, so that means saving while managing competing priorities,” says Rod Mims, Executive Vice President, Head of Retail Sales at Athene, a retirement services company focused on providing financial security to retirees. “They also have to plan for longer lifespans and a higher cost of living, which means their savings will need to last longer. In addition, post-Boomer generations are more likely to have financial or caretaking responsibilities for their adult children and aging relatives,” he adds.
ROD MIMS, EVP, Head of Retail Sales, Athene
Many Gen Xers express concern about being unprepared for retirement. A 2024 Bankrate study1 found that 43% of Gen X respondents feel significantly behind in their retirement savings. For Baby Boomers, retirement often meant a pension or a defined benefit plan. But today, such guaranteed income streams are rare. Instead, the responsibility often rests squarely on individuals to fund their retirement through 401(k)s, IRAs and other self-directed plans.
The stories of Gen Xers and millennials underscore this generational shift. Today’s middle-aged workers are more likely to be self-employed than their Boomer predecessors, according to a 2024 report on the gig economy from Transunion. And while the self-employed have ways to build retirement savings, it’s easier said than done.
Ilima Loomis, 46, has been a successful freelance writer for years, but found it hard to build up her retirement savings. When she was a staff writer, she maxed out her 401(k), but those automatic deductions stopped when she started her own business. “When you have a company-sponsored 401(k), they just take it out automatically. You don’t think about it. But when you’re on your own, you have to be proactive,” she says.
As a freelancer, she put money aside, but at nowhere near the rate she did when she was on staff. Then she lost half her savings during a divorce. “It just really hit home that I was not prepared.” A subsequent relocation to Canada further drained her resources. Now with her daughter preparing to attend university, Loomis says she plans to make up for the lost savings by working more. “That’s the positive side of being a freelancer. If I work more, I can make more and save more,” she says.
For those with varying work histories, the challenge is even greater. Christian Eskelund, a 57-year-old journeyman electrician living in Augusta, Georgia, estimates he’s had about 30 different jobs, everything from fitness trainer to photographer to mortgage sales, but few that came with retirement savings plans.
That wasn’t a concern when he was younger, but as he neared middle age, he realized he needed to get more serious about saving. “I was in my 40s, suddenly divorced and thinking, ‘Oh my gosh, I’ve got a 10-year-old son and I don’t have jack.’ That just lit a fire under me,” he says. That’s when he studied to become an electrician. As part of a union, he had money automatically put into an annuity by his employer, a power plant. He also has some savings in a brokerage account, which he manages himself.
SONYA LUTTER, FINANCIAL THERAPIST
Financial therapist Sonya Lutter, Ph.D., CFP®, LMFT, of Texas Tech University’s School of Financial Planning, says it’s not uncommon to see people in mid-to-late careers who haven’t discussed their retirement expectations—not even with their spouses. “One spouse may say, ‘I’m done at 50,’ and the other has no plans to retire,” Lutter explains. “Financial therapy opens conversations that most people have been avoiding.”
Much of the avoidance stems from anxiety, whether it’s from childhood or some other previous experience, Lutter says. Whatever the origin, understanding and being aware of the root cause is crucial. “It’s impossible to change behavior without understanding the why,” she says.
Anxiety and stress can have a significant impact on decision-making. That’s especially apparent during market downturns. “When markets fall, decisions become emotional and short-term oriented—the exact opposite of what’s needed for retirement planning,” she cautions. Her advice? “Take a breath, and avoid rash decisions during stress.”
The pressures faced by Gen Xers and millennials have been further compounded by market volatility, economic uncertainty and existential concerns about AI and climate change. Matt Thompson, a 51-year-old technology executive in California, keeps a diversified portfolio that includes IRAs, brokerage accounts with mutual funds, real estate investments and even some angel investing, funding startups. Yet despite his diverse holdings, Thompson worries about longer-term threats to retirement security, including AI’s impact on white-collar jobs and climate change affecting his California real estate investments.
“Everyone in Los Angeles is at some risk of losing their home insurance, which really puts housing prices—a big asset for most people—at risk,” he says.
Given all these anxieties, what practical steps should these generations take? Mims suggests proactively engaging with financial professionals. “Connecting with a financial professional for assistance in budgeting, finding the right retirement savings strategies and identifying solutions to help meet your financial goals can help you feel more in control.”
Mims also recommends exploring annuities, an insurance product that’s gaining traction generally among Gen X and millennials concerned about outliving their savings. Annuities can provide guaranteed lifetime income and help shield portfolios from market volatility. “We see the difference annuities can make in helping build retirement confidence,” he says.
Lutter also stresses the need for open conversations, within the family and with a financial professional. “People who have a financial professional to guide them are significantly happier and more confident,” Lutter notes. “Simply outsourcing this stress makes an enormous difference in emotional well-being.”
Loomis says she talks to a financial professional who has worked with her parents for years. “If anything, it makes it easier for me to kind of set it and forget it.”
For Spiegel, the path forward will involve difficult conversations about money with her parents and husband. While she’s cautiously optimistic, her story reflects a broader truth: For Gen Xers and millennials, retirement planning is complex and fraught—but also manageable with clarity, dialogue and careful planning.
Learn More
Custom Content from WSJ is a unit of The Wall Street Journal Advertising Department. The Wall Street Journal news organization was not involved in the creation of this content.
The pressures faced by Gen Xers and millennials have been further compounded by market volatility, economic uncertainty and existential concerns about AI and climate change. Matt Thompson, a 51-year-old technology executive in California, keeps a diversified portfolio that includes IRAs, brokerage accounts with mutual funds, real estate investments and even some angel investing, funding startups. Yet despite his diverse holdings, Thompson worries about longer-term threats to retirement security, including AI’s impact on white-collar jobs and climate change affecting his California real estate investments.
ROD MIMS, Executive Vice President, Athene
Not affiliated with or endorsed by the Social Security Administration or any governmental agency.
Under current tax law, the Internal Revenue Code already provides tax deferral to qualified money, so there is no additional tax benefit obtained by funding a qualified contract, such as an IRA, with an annuity; consider the other benefits provided by an annuity, such as lifetime income and a Death Benefit.
Guarantees provided by annuities are subject to the financial strength and claims paying ability of the issuing insurance company.
This material is a general description intended for informational and educational purposes. Athene Annuity and Life Company (61689), headquartered in West Des Moines, Iowa, and issuing annuities in 49 states (excluding NY) and in D.C., and Athene Annuity & Life Assurance Company of New York (68039), headquartered in Pearl River, New York, and issuing annuities in New York, are not undertaking to provide investment advice for any individual or in any individual situation, and therefore nothing in this should be read as investment advice. Please reach out to your financial professional if you have any questions about Athene products or their features.
The purpose of this material is solicitation of insurance. Any sale of an annuity will require contact with a financial professional.
The term “financial professional” is not intended to imply engagement in an advisory business with compensation unrelated to sales. Financial professionals will be paid a commission on the sale of an Athene annuity.
INVESTMENT AND INSURANCE PRODUCTS ARE: • NOT FDIC INSURED • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • NOT A DEPOSIT OR OTHER OBLIGATION OF, OR GUARANTEED BY, THE BANK OR ANY OF ITS AFFILIATES • SUBJECT TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF THE PRINCIPAL AMOUNT INVESTED
Annuities contain features, exclusions and limitations that vary by state. For a full explanation of an annuity, please refer to the Certificate of Disclosure or prospectus (as applicable) and contact your Financial Professional or the company for costs and complete details.
SOURCES: 1. Gillespie, Lane, “Survey: More Than Half of American Workers Feel Behind on Their Retirement Savings,” Bankrate, September 25, 2004.
DISCLAIMER:
Under current tax law, the Internal Revenue Code already provides tax deferral to qualified money, so there is no additional tax benefit obtained by funding a qualified contract, such as an IRA, with an annuity; consider the other benefits provided by an annuity, such as lifetime income and a Death Benefi
Guarantees provided by annuities are subject to the financial strength and claims paying ability of the issuing insurance company.
This material is a general description intended for informational and educational purposes. Athene Annuity and Life Company (61689), headquartered in West Des Moines, Iowa, and issuing annuities in 49 states (excluding NY) and in D.C., and Athene Annuity & Life Assurance Company of New York (68039), headquartered in Pearl River, New York, and issuing annuities in New York, are not undertaking to provide investment advice for any individual or in any individual situation, and therefore nothing in this should be read as investment advice. Please reach out to your financial professional if you have any questions about Athene products or their features.
The purpose of this material is solicitation of insurance. Any sale of an annuity will require contact with a financial professional.
The term “financial professional” is not intended to imply engagement in an advisory business with compensation unrelated to sales. Financial professionals will be paid a commission on the sale of an Athene annuity.
INVESTMENT AND INSURANCE PRODUCTS ARE: • NOT FDIC INSURED • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • NOT A DEPOSIT OR OTHER OBLIGATION OF, OR GUARANTEED BY, THE BANK OR ANY OF ITS AFFILIATES • SUBJECT TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF THE PRINCIPAL AMOUNT INVESTED
Annuities contain features, exclusions and limitations that vary by state. For a full explanation of an annuity, please refer to the Certificate of Disclosure or prospectus (as applicable) and contact your Financial Professional or the company for costs and complete details.
