3 Investment Tips for Gen Xers Who Don’t Think They’ll Ever Retire
November 7, 2025
Gen X isn’t known for its optimism. After all, this is the cohort best remembered for grunge and slogans like “fluent in sarcasm.” That pessimism has extended to their attitude toward retirement: In a recent study conducted by Northwestern Mutual — appropriately titled “Reality Bites” — more than half of Gen X respondents said they don’t feel financially ready for retirement.
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They have good reason to feel financially frustrated, from the challenges of supporting elderly parents and children to still feeling the aftershocks of economic downturns. But reality doesn’t have to bite — or “feel Minnesota” (to paraphrase Soundgarden) — if Gen Xers build solid investment habits now.
To help Gen X feel more empowered about retirement, GOBankingRates spoke with Robert Varghese, head of investments for Groundfloor, who offered his top investment tips to help Gen Xers get out of their funk and into the flow of a good retirement plan.
As a member of Gen X himself, Varghese understands the unique challenges his peers face. Confronted with the need to support children who are growing up while also caring for aging family members, many in his generation aren’t prioritizing their own financial well-being — including retirement planning.
“There’s a saying that ‘you can’t help others if you don’t take care of yourself first,’” he said. “This is true of physical health, mental health and financial health. While it’s never too late to start saving and investing, the sooner you start, the better off you’ll be.”
Varghese said Gen Xers would be wise to focus on their 401(k) plans as well as IRAs — including traditional, Roth, and self-directed accounts. Take advantage of employer matches on 401(k)s to avoid leaving money on the table.
If paying for a child’s college education is a concern, he said, parents should contribute what they can to a 529 plan, which offers tax advantages and can make saving for education easier.
Prioritizing their own financial and personal needs may also require Gen Xers to have difficult conversations with elderly family members on topics such as medical directives, types of care and estate planning.
“All of this will help you plan your own course and make decisions accordingly,” he said.
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Many people came away from the global financial crisis of 2007-2008 with a pessimistic outlook on their financial futures. For Varghese, the real lesson is the value of consistent saving and investing as early as possible.
He offers the example of two investors — one in their 20s and the other in their 40s — who both started saving and investing a year or two before the crisis hit. Both might have seen their portfolios take a roughly 50% hit, meaning they would need a 100% gain to return to pre-crisis levels. The twenty-something has more time to recover than the forty-something, who faces a shorter window to reach financial goals.
Even then, the situation is far from hopeless.
“It’s never too late. The answer isn’t to take on more risk but to consider other asset classes beyond public stocks and bonds,” he said. “Private market investing can offer attractive risk-adjusted returns to help grow your wealth.”
While Varghese emphasizes the importance of tending to traditional retirement accounts — especially taking advantage of employer matches — he doesn’t want Gen Xers to rely on those plans alone.
Instead, he encourages considering alternative investments, such as real estate, which he calls a solid way to expand a portfolio.
“While homeownership isn’t always easy, it does come with certain tax benefits that can help you build wealth,” he said. “If being an owner or active real estate investor seems too time-consuming or bothersome, consider passive real estate investing through private debt.”
He also noted that there are many strategies and products any investor can use to build retirement wealth.
“This includes private market investments, which were once the exclusive domain of institutions and the ultra-wealthy,” he said. “These investments can provide higher yields and better cash flow than public market investments and allow you to create wealth more efficiently.”
Gen X has been dealt some tough hands — from the reverberations of the financial crisis to their position as the “sandwich generation,” caring for both kids and aging parents. Yet there is hope for their retirement. By prioritizing themselves, choosing the right accounts, starting early and investing consistently, and exploring alternative investments, Gen Xers can still prepare for a secure retirement.
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This article originally appeared on GOBankingRates.com: 3 Investment Tips for Gen Xers Who Don’t Think They’ll Ever Retire
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