A] Prelude
For more information on pension systems, risk and coverage, feel free to visit our dedicated webpages:
https://expatpensionholland.nl/usa-expat-pensions
https://expatpensionholland.nl/global-pillars-systems
https://expatpensionholland.nl/global-investments-risks-0
https://expatpensionholland.nl/global-social-security-coverage
B] 11 Tips for Gen X
Generation X is next in line to retire after the boomers and some even have already begun. However, more than half of Gen Xers (52%) don’t feel prepared for retirement, according to a recent Northwestern Mutual study. While being so close to retirement may seem like it’s too late to take any significant action, financial experts explain that’s not the case.
Here are 11 things Gen Xers who feel unprepared for retirement can consider:
1] Create a Financial Plan
Though it’s tempting to try and land on a number that will equal security in retirement, there is not a specific round dollar amount that is one-size-fits-all for retirement.
We often tell clients that there is no such thing as average, and if there was, you wouldn’t want to be that. The only way to truly know if you are prepared for retirement is to seek out a specialist and actually do the work to create a realistic financial plan that includes all tax/investment/risk/cost/cash flow/estate planning aspects.
2] Save Early and Often
While the most important thing to prepare for retirement is “to save early and often,” it’s never too late to start. Set aside what you can for retirement and be sure to take advantage of your company’s retirement plan match if there is one and use if possible all tax benefits.
3] Delay Social Security Benefits
If you’re toying with the idea of taking Social Security benefits before the full retirement age of 70, there are significant benefits to starting retirement benefits as late as possible if you are in reasonably good health.
You will receive a higher benefit, potentially 50% to 75% higher if you wait until age 70 versus your early 60s, and that will provide more financial security if you live into your late 80s or 90s.
4] Leverage Other Assets
If you have other assets, you could leverage those to supplement your income in your 60s. Fixed annuities and other investments can provide guaranteed income over a fixed period of time or for the rest of your life. Additionally, if necessary, you could consider a reverse mortgage or sell a home to free up liquid cash.
5] Contribute or Open a 401(k) Account
A very effective tool for preparing for retirement is your 401(k). If a Gen Xer is feeling unprepared for retirement, the generally easiest step is to make sure a piece of each paycheck is going directly into a retirement account. The best time to start funding your 401(k) was yesterday, but since that is not an option, do it immediately.
6] Create Resilience in Your Financial Plan
For Gen Xers nearing retirement and feeling unprepared, the focus should shift from catching up to creating resilience in their financial plan. At this stage it’s less about perfecting every detail and more about optimizing what you have and ensuring your choices align with your personal goals.
7] Get Clear and in Control
Instead of focusing solely on a dollar figure, what’s important at this stage is for Gen Xers to get clarity and control over your financial ecosystem. This includes understanding fixed-income streams such as Social Security, pensions or rental income; minimizing debt, and ensuring your assets are liquid and accessible.
It’s not just about numbers. It’s about confidence in navigating your retirement years without financial surprises derailing your plans!
8] Rethink Retirement’s Timing and Structure
Retirement doesn’t have to be all-or-nothing. In fact, many Gen Xers are exploring phased retirement, which blends part-time work with the leisure of retirement.
This approach extends earning potential while allowing savings to continue compounding. It’s a strategy that also keeps people engaged socially and intellectually — factors often overlooked in financial plans.
9] Focus On Cash Flow Rather Than Net Worth
Instead of chasing a specific retirement savings target, prioritize creating a sustainable cash flow. This includes asking, “How much income do you need monthly, and what sources can reliably provide it?”
This shift in perspective empowers decision-making that feels actionable, not overwhelming.
10] Invest In Health as a Financial Strategy
Healthcare costs can erode retirement savings faster than any market downturn. Thus, allocating resources to preventive care and lifestyle adjustments now — like fitness or nutrition coaching — pays dividends in reduced healthcare expenses later.
This is a critical, often ignored, component of retirement preparedness.
11] Pursue Nontraditional Income Strategies
Time is the biggest challenge but it’s not insurmountable. For individuals with little in savings, we often suggest exploring nontraditional income strategies like for example renting out unused property or monetizing skills through gig work.
These options provide immediate financial relief without requiring dramatic lifestyle changes.
C] Finally
Being prepared isn’t about achieving perfection but about building a sustainable and flexible plan that uses all available options and (tax) benefits and thus also provides peace of mind.
It’s not too late to take control. A powerful realization for anyone on the cusp of retirement!