15 Worst Retirement Mistakes Gen X Keeps Making

As members of Generation X approach retirement age, careful financial planning becomes more critical than ever.

Born between 1965 and 1980, many in this group are balancing competing priorities — such as supporting aging parents and helping adult children — while trying to secure their own retirement. Making the wrong money moves at this stage can derail the best-laid plans.

But the good news is that it's not too late to adjust course. If you're working to solidify your retirement plan, here are 15 mistakes to steer clear of as you approach this phase of life.

High-interest credit card debt can drain your finances quickly, making it harder to save for retirement.

Credit card balances snowball if left unchecked, so it's crucial to prioritize paying off high-interest debt to free up more money for your future.

If you get out of debt now, it will help improve your credit score, which could lead to better financial options now and during retirement.

Failing to contribute the maximum to your 401(k) or IRA is a missed opportunity to put away tax-advantaged savings for the future.

In 2025, you can contribute up to $23,500 to a 401(k) or $7,000 to an IRA. Take full advantage of this chance to grow your retirement nest egg. Every additional dollar invested now has the potential to grow over time.

If you're 50 or older, you can make catch-up contributions to bolster retirement savings. In 2025, this means adding an extra $7,500 to your 401(k) and $1,000 to your IRA.

In addition, adults between the ages of 60 and 63 can make an even larger catch-up contribution to a 401(k) or similar retirement plan — $11,250.

These additional contributions can make a significant difference to the size of your retirement fund over time. The closer you are to retirement, the more critical these catch-up contributions become.

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Withdrawing money from your retirement accounts before age 59½ typically incurs a 10% penalty and taxes, severely depleting savings.

Instead, explore other options to access cash, such as a home equity line of credit or personal loan. Preserving retirement funds ensures they're available when you truly need them during your golden years.

Late payments on credit cards or loans can hurt your credit score, and you might face higher interest rates and extra fees.

Set up auto-pay or calendar reminders to ensure all bills are paid on time so you keep your credit in good standing. Good payment habits now can save you thousands of dollars in interest and penalties over time.

While it's natural to want to support adult children, overextending yourself financially can jeopardize retirement security.

Set boundaries and consider helping in non-monetary ways, such as offering advice. And remember, securing your financial future also sets a good example for your children.

In 2025, health savings accounts (HSAs) allow you to contribute either $4,300 (for singles) or $8,550 (for those with a family plan). In addition, those who are 55 and older can contribute an extra $1,000 annually.

Maxing out your HSA contributions can create savings that may help you cover health care costs in retirement while offering tax advantages both today and in the future.

If you don't have an estate plan — or if you haven't updated the one you do have — your assets may not be distributed according to your wishes, creating legal and financial complications for loved ones.

Work with an attorney to draft a will, establish a health care directive, and assign power of attorney. Having an up-to-date estate plan in place ensures peace of mind for both you and your family.

While supporting causes you care about is commendable, donating too much can strain your finances.

Set a budget for charitable contributions and stick to it, ensuring your generosity doesn't hinder retirement goals. Consider planned giving or trusts as tax-efficient ways to contribute.

If you live beyond your means in an attempt to keep up with neighbors or peers, you're setting yourself up for financial stress.

Focus on your own goals and values instead of trying to maintain appearances. Keeping money priorities straight will benefit your long-term financial security.

Spontaneous purchases can derail your budget and prevent you from saving adequately for retirement.

Combat impulse shopping by sticking to a list and giving yourself a cooling-off period before making unplanned buys.

Alternatively, you can follow the 24-hour rule for purchases: Wait one day before purchasing what's in your online shopping cart or buying an extra item in the store. During this period of restraint, you might realize you don't need the item after all.

Managing your finances without professional guidance can lead to costly mistakes. A financial advisor can provide personalized advice to help you maximize savings and avoid pitfalls.

Professional advice often uncovers opportunities you might otherwise miss.

Being overly conservative with investments may limit your retirement savings potential.

While it's essential to protect your principal, allocating a portion of your portfolio to growth-oriented assets like stocks can help you outpace inflation. Balancing risk with reward is crucial for building long-term wealth.

Putting all your eggs in one basket — whether it's a single stock, industry, or asset class — can leave you vulnerable to market fluctuations.

Spread investments across various sectors and asset types to minimize risk. A diversified portfolio often can better withstand economic downturns.

If you fail to account for the fact that life expectancy has steadily increased, you very well may outlive your retirement savings.

Planning for a 20-year retirement may leave you financially vulnerable if you live longer than expected. Consider options such annuities to ensure you get ahead financially in a way that makes your savings last for the long haul.

Securing a comfortable retirement starts with avoiding costly financial mistakes. By recognizing these potential pitfalls and taking proactive steps to prevent them, you can set yourself up for a stress-free retirement.

Are you ready to make the changes necessary to prepare for retirement and achieve financial peace of mind? Now is the perfect time to take control of your future.