The oldest members of Gen X will turn 60 this year, and many will be thinking about retirement soon.

We talked with Lorianne Pannozzo, Head of Workplace Personalized Planning & Advice at Fidelity, about the positive impact workplace managed accounts can have on retirement readiness and financial outcomes for Gen Xers as they reach this stage of life.

Q: What is the positive impact managed accounts can have on retirement readiness and financial outcomes for Gen Xers as they reach 60? 
 
Lorianne Pannozzo: For those seeking a personalized investment strategy, workplace managed accounts allow individuals to easily create a customized plan, manage investment risk, and receive ongoing portfolio management from a professional – both leading up to and through retirement. In fact, a recent Fidelity study looked at the impact of workplace managed accounts on our Gen X participants and found very positive momentum toward retirement readiness.
 
One important shift we see among Gen X participants who enroll in a managed account is that they seem to have more financial wellness awareness. Our data shows the number of Gen X managed account holders with at least 3 months of emergency savings more than doubled from their point of enrollment in a managed account.
 
Related: ‘Sandwiched’ Gen X is staying in the workforce longer: What does that mean for their retirement?

Additionally, Gen Xers with managed accounts appear to be more secure in their investment strategy, with the number of Gen X participants claiming they would not take drastic action during a market downturn nearly doubling after enrollment.
 
Finally, we see that workplace managed accounts may improve Gen Xers’ financial confidence. At the time of enrollment, Gen X participants reported the lowest confidence in their financial security on average compared to other generations. Since enrollment, Gen X’s confidence in their financial security has nearly doubled.
 
 
Q: Are many Gen Xers falling short when it comes to retirement readiness?
A: When it comes to retirement readiness, Gen X has certainly had an uphill battle. In addition to being the first generation where predictable sources of income – like pensions – will not be their primary retirement savings vehicle, this generation also has also confronted several major economic downturns during their working years, including the dot-com bust of the early 2000s and the Great Recession (from 2007-2009).
 
According to Fidelity’s most recent State of Retirement Planning study, just over half (53%) of Gen X-ers are confident they will be able to retire on their own terms, and one-third say they may continue to work in retirement to supplement their income. Additionally, a majority remain wary of the rising cost of health care and what portion of their income will be covered by Social Security.
 
However, there are reassuring signs that retirement savers are on the right track, as recent Fidelity data revealed strong growth and record-high account balances in 2024 among IRAs, 401(k)s, and 403(b)s—including a savings rate close to Fidelity’s goal of 15%, which includes both employee and employer contributions. Gen X, in particular, experienced growth, with the average IRA contribution for the generation increasing 16% year-over-year. Long-term Gen X 401(k) savers (who have been in their plan for 15 years) saw an 18% account balance increase from a year ago ($508,000 vs. $589,400).
 
Q: What else can employers do to help Gen Xers balance financial pressures while planning for the future?
A: According to the U.S. Bureau of Labor Statistics, one-quarter of the workforce will be over age 55 by 2032. With this major shift on the horizon, it is essential for employers to make sure they have benefits and supports in place to help pre-retirees prepare for a successful financial future. Some benefit options for employers to consider include:
401(k) match: Many employers offer employees a 401(k) match, where they agree to put money in an employee's retirement account based on what the employee contributes. For employees, this can significantly boost retirement saving efforts.
HSA: Health Savings Accounts (HSAs) are among the most tax-efficient savings options available, yet many working Americans are not leveraging the tax advantages of the account. While HSAs are a great option to pay for qualified medical expenses, they can be a strong retirement tool as well. Those enrolled in an HSA-eligible plan can invest their pre-tax contributions, and any potential growth is tax-free, too.
Workplace in-plan annuities: Many employers offer the option for employees to purchase an in-plan annuity, enabling them to cover essential expenses in retirement by taking a portion of their retirement savings and turning it into a guaranteed payment for life.
Phased retirement options: Given the financial demands on employees, employers may want to consider offering the option of a phased retirement to employees – a flexible arrangement allowing a gradual transition from full-time work to retirement. Fidelity research shows that about one-third of baby boomers who are still working have either delayed or plan to delay their retirement, and the vast majority (75%) do so out of financial necessity. Phased retirement programs can extend employees’ working years, allowing more time for their retirement savings to grow.
Managed accounts: Through a workplace managed account, retirement savers have access to a personalized retirement savings account that is professionally tailored to the participant and managed to align with their unique circumstances and goals.