The oldest members of Generation X — that generation born between 1965 and 1980 and known for its irreverence, sarcasm and indifference — are hitting 59½ and eligible to start withdrawing money from retirement accounts without penalty. But should they be touching their nest eggs so soon?

As the first do-it-yourself generation funding retirement largely without private pension plans, many members of Gen X graduated college or high school during a recession. They got their first jobs when 401(k)s were in their infancy and predated the internet with paper statements mailed weeks after a quarter ended.

The early 401(k) plans, if they were offered by employers at all, were unsophisticated and lacked tools for education. Those early plans also lacked automatic enrollment, automatic escalation of savings allocations and target-date funds — all factors making it easier to save nowadays.

It was not an auspicious beginning to funding retirements that could stretch over decades.

“Generation X represents a pivotal transition in our evolving retirement landscape,” said Catherine Collinson, chief executive of the nonprofit Transamerica Institute and Transamerica Center for Retirement Studies, or TCRS. “Many Gen X–ers may be on a collision course. However, I believe there are options for course corrections.”

Generation X has median retirement savings of $93,000, according to a new study by the Transamerica Institute and TCRS. Only 16% of Gen X is are “very” confident of being able to fully retire with a comfortable lifestyle, the study found. Just 21% of Gen X members strongly agreed that they are building a large enough retirement nest egg.

“59½ is a milestone birthday with regards to saving and planning,” Collinson said. “It’s time for Generation X to do a lot of homework, which can positively influence their retirement outcome.”

Collinson said Gen X–ers need to focus on keeping job skills fresh and understanding what their employers need so they can work as long as they need to. Exploring ways to boost income and cut expenses is also key. Learning ahead of time the complex details of Medicare, which provides healthcare coverage starting at 65, will be crucial as well, she said.

“Getting ready for retirement takes on a real urgency during the final years of your career,” said Bryan Pinsky, president of individual retirement at Corebridge Financial. “Your financial situation is probably at its strongest, but your window for preparation is closing.”

In addition to saving for retirement, Generation X also may be juggling competing financial pressures such as helping aging parents and putting children through college. Such complications could call for a financial adviser or at least some serious at-home budgeting and planning efforts, experts said.

American adults believe they will need $1.46 million to retire comfortably, according to Northwestern Mutual’s 2024 Planning & Progress Study. That makes for a big gap between the median actual balance and the sum people think they need.

“What does it mean to be behind? How would you know if you are behind if you don’t have a plan? The numbers are emotional or are what they think or expect they will need, as opposed to doing the planning to determine your personal retirement number,” said Rob Williams, managing director of financial planning at Charles Schwab.

Less than half (44%) of Gen X is very confident in its ability to manage day-to-day financial priorities, and just 28% could pay for an unexpected expense, according to research from Corebridge Financial. Just 32% of Gen X–ers are confident that they can manage their retirement money to provide income for as long as they live, according to Corebridge, and nearly two in three are concerned both about quality of life and running out of money if they were to live to 100.

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