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Baby boomers may just be the last generation to have had a smooth and financially secure retirement. For their children, most of whom are Generation X, retirement will not be as easy as it was for their parents.

Cost of living, healthcare and housing prices are rising faster than wages — eroding savings and increasing reliance on credit, according to Natalia Brown, chief consumer affairs and creditor relations officer at National Debt Relief (NDR). Many Gen Xers are finding they need to work longer, delay retirement or tap into their limited savings just to stay afloat.

Here are some of the other reasons why Gen X can’t retire like boomers, and what they can do about it.

Gen Xers Have Less Saved

Many Gen Xers are entering their 50s and early 60s with both debt and significant anxiety about their finances, Brown said, citing an NDR survey which found that “most Gen Xers in debt lack confidence in their ability to retire as planned and have deep concern that Social Security alone won’t be enough to sustain them.”

Gen Xers Survived More Economic Disruptions

Additionally, “Gen Xers have been through a lot” at the economic level, according to Jay Zigmont, CFP, founder of Childfree Trust.

“Job disruptions disrupt retirement savings. Crashes add to the uncertainty and may result in Gen Xers having less money saved and taking less risk when investing,” he said.

Indeed, unlike boomers, Gen Xers have faced major economic disruptions during their critical wealth-building years, such as the dot-com crash, the 2008 housing crisis and the COVID-19 pandemic. Add to this “stagnant wages and rising costs,” Brown said it’s no surprise that many Gen Xers now face financial strain.

These economic hardships have also left many Gen Xers feeling financially cautious, if not discouraged. However, she said that financial confidence can be rebuilt “with a plan, support and the belief that it’s not too late.”

Gen Xers Are a Sandwich Generation

Gen Xers are also a key “sandwich generation” with many of them financially supporting both their children and their aging parents, sometimes while still managing their own debt. “This juggling act makes it extremely hard to prioritize retirement savings,” Brown said. She pointed out that “these overlapping responsibilities are draining both time and money, which is why so many Gen Xers feel behind.”

Zigmont pointed out that caring for parents is so common that “we now include it as a core step in our clients’ financial plans.”

Boomers Had Pensions; Most Gen Xers Don’t

Boomers reaped the benefits of “the original design for retirement planning,” Zigmont pointed out, which focused on four parts: pension, retirement savings, Social Security and building equity in one’s primary residence.

Unfortunately, “pensions are now rare, except for people working in public service,” he said. In fact, he explained, 401(k) plans were first introduced with the intent to help grow retirement savings, but most employers saw them as a cheaper option than a pension, so they stopped offering pensions.

“Gen Xers are the first generation to retire without pensions. It is often called the ‘401(k) experiment’ as we don’t know if it will work or if people truly saved enough,” Zigmont said. What is known is that Social Security is not enough to retire on alone, making 401(k) plans more crucial than ever.

Many Gen Xers Live Paycheck to Paycheck

Simply put, the higher cost of living is impacting everybody, but Gen Xers are just closer to retirement than their younger peers, so it comes with added stress. Zigmont also pointed to rising housing costs and overall inflation.

“If you are living paycheck to paycheck, you don’t have the money to retire at all,” he said.

Debt Is Holding Gen X Back

Zigmont said that there’s a necessary step for Gen Xers who feel behind on retirement to be able to route more money to that end: Get out of debt first.

“Many Gen Xers will have to delay retirement to make ends meet,” he said.

What Gen Xers Can Do To Catch Up

Despite this grim outlook, it’s never too late to take meaningful action.

“Gen Xers can start by maximizing catch-up contributions to their 401(k) or IRA, especially since those over 50 are eligible to contribute more,” Brown said, urging anyone alarmed about their retirement to start with a plan, get support and focus on what you can control.

While delaying retirement may not be ideal, even a few extra working years can make a significant difference — not just in savings, but in reducing the number of retirement years that need to be funded as well, she pointed out.

Zigmont recommended the Catching Up to FI podcast for those who feel behind to realize they’re in a very common situation.

“There are millions of people just like you that are trying to catch up. It is not too late,” he said.