Gen Xers are the next cohort to retire after baby boomers. While that may still be a decade or more away for the youngest members, if your retirement savings don’t feel robust enough, retirement can seem more stressful than exciting.
For Gen Xers feeling underprepared for retirement, here are 11 things to do in 2026 to get back on track.
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Take a Reality Check
Start by taking a reality check, according to Stoy Hall, CFP and CEO and founder of Black Mammoth. “List every account, total the balances, write down what you’re saving each month and calculate the gap between your current path and the number you actually need.”
If it takes more than half an hour, you’re overcomplicating it, he said.
Sketch a Bracket Map for 2026
Next, sketch a quick “bracket map” for 2026, Hall said. Decide what income you want taxed now and what you want taxed later. “Your marginal rate might shift. That affects Roth versus pre-tax, when you want bonuses to hit and how you handle capital gains.”
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Take Advantage of Catch-Up Contributions
At age 50, Gen Xers are eligible for catch-up contributions, an additional $7,500 to retirement accounts like 401(k) and 403(b) plans, for a total of $31,000 annually, Hall explained. If you’re 60 to 63, use the higher “super catch-up” of an additional $11,250, with a cap of $34,750.
As of 2026, however, higher-earning workers may be required to make catch-up contributions on a Roth-only basis in workplace plans, according to Ashley Weeks, a wealth strategist at TD Wealth.
“This means those catch-up contributions may not provide a current reduction in taxable income but will be eligible for tax-free growth. The income threshold for this new provision is $145,000 of earnings in the prior year,” Weeks explained.
Hall recommended automating all catch-up contributions.
Beef Up Emergency Savings
“The single most important action anyone can take regarding retirement preparation is to diligently maintain an emergency savings account with at least four months of living expenses,” Weeks said.
This helps protect against unexpected events like job loss, which could lead to early retirement account distributions and penalties if there isn’t an adequate emergency cushion, he advised.
Hall suggested an emergency fund of nine to 12 months if you’re single, self-employed or have variable income.
Save For Other Expenses Here
Any expense coming in the next one to three years belongs in a high-yield savings account or short Treasury ladder, Hall urged. “Not stocks. Everything else goes to your target mix. Cash is a tool for stability, not a growth plan.”
Roth Conversions
If you’re thinking about a Roth conversion, remember that “conversions help when today’s bracket looks lower than your future bracket, you want smaller required distributions later and you can pay the tax from outside the IRA,” Hall said.
He advised working “in brackets, not guesses.” Stop before spilling into the next tax bracket, where you’ll pay more.
Additionally, “Watch the usual cliffs in later years like Medicare surcharges and ACA thresholds. Gen X has a wider runway before required minimum distributions (RMDs), which makes staged conversions practical,” he said.
Employer Match and Debt Repayment
Anyone who receives an employer match for their 401(k) plan should take the full match every time, Hall insisted. “That is a guaranteed return. After that, attack any debt around 8% to 9% APR or higher before adding extra to investments. Paying off a 17% card balance beats hoping the market bails you out.”
Social Security for Gen X
Deciding when to claim Social Security is an important but tough call. While full retirement age is 67, you can start claiming as early as 62, but you’ll lock in a smaller benefit for life, Hall explained. Waiting after 67 increases benefits by about 8% per year until age 70.
“Singles with strong health and long family longevity often benefit from waiting. If cash flow is tight or health is an issue, earlier can be appropriate.”
Couples should delay the higher earner to age 70 to protect the survivor benefit, then time the lower earner around cash flow and taxes.
Using Home Equity Wisely
If you need more cash and own a home with equity, a home equity line of credit (HELOC) is useful if your first mortgage rate is low and you need flexible access for projects or as a safety valve, Hall said.
However, he warned, keep usage modest and, if possible, choose fixed-rate loans to avoid variable-rate increases. “A cash-out refinance only makes sense if the rate and cost math work and you’ll hold it long enough to benefit.”
Otherwise, downsizing is a great option if the house is too big or too expensive. “Lower payment, lower taxes and insurance, less maintenance and equity you can redeploy to the plan,” Hall said.
Bring In Side Income
If you can do some side work around your day job, Hall urged finding ways to add income. “Sell your expertise in fixed-scope blocks. Take expert network calls for 30 to 60 minutes. Offer four-week consulting sprints with one clear deliverable. Teach a workshop your employer can sponsor.”
Whatever you do, he said, keep it simple.
Be Strategic With Investing
Finally, when considering your investment approach, Weeks said there’s no single default allocation that works for Gen Xers since “the oldest members of this cohort are at the doorstep of retirement and the youngest Gen Xers could still be working in 20 years.”
Gen Xers should assess their risk tolerance since major portfolio losses shortly before or after retirement are more likely to deplete funds needed for retirement expenses. Starting 10 years before their planned retirement date, “Gen Xers should develop a strategy to methodically reduce portfolio volatility as retirement approaches,” Weeks said.
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This article originally appeared on GOBankingRates.com: Gen Xers Underprepared for Retirement Should Do 11 Things in 2026
