Part 1: Gen X Built the Nest Egg. Now Comes the Harder Part.

For much of their careers, Gen X investors have received a fairly straightforward message about retirement:

Save. Invest. Keep going.

For many, that strategy worked.

Gen X came of age financially during a fundamental transformation of the American retirement system. Traditional pensions became less common, while 401(k)s, IRAs and other defined-contribution plans placed considerably more responsibility on individual workers.

As a result, many Gen X investors learned to manage their own retirement assets, navigate market cycles and make investment decisions largely on their own.

And they became pretty good at it.

A 2025 study conducted by WSJ Intelligence and Equitable found that 78% of surveyed Gen X investors felt confident in their investment decisions, while nearly three-quarters described themselves as knowledgeable and experienced investors. 

But retirement introduces a different problem.

Building wealth and living from wealth are not the same discipline.

Accumulation Was Only Phase One

During most of a career, the retirement equation is fairly forgiving.

Income arrives from employment. Contributions go into retirement accounts. Investments have time to recover from market declines. And, ideally, assets compound over decades.

Retirement reverses much of that process.

Instead of putting money into your accounts, you begin taking money out.

Instead of employment income covering your expenses, your investments, Social Security and other resources have to begin doing the job.

And instead of having decades to recover from every market disruption, withdrawals may be occurring at the same time.

That transition is known as decumulation.

It requires decisions about:

• how much to withdraw,

• which accounts to draw from first,

• how withdrawals will be taxed,

• when to claim Social Security,

• how much investment risk to maintain,

• how to prepare for healthcare costs,

• and how to make sure your resources last.

The underlying research identifies withdrawal sequencing, coordination among retirement accounts, tax exposure, market risk and longevity risk as important components of this next stage of planning. 

For many investors, those decisions are considerably more complicated than choosing investments.

Confidence Is Valuable. A Plan Is Better.

One of the most interesting findings in the study is the gap between investment confidence and comprehensive planning.

Although Gen X investors generally consider themselves financially capable, 40% reported not having a written financial plan. And among those who had created one, many had done so largely on their own. 

That distinction matters.

Owning several good investments does not necessarily mean you have a retirement strategy.

Neither does having a 401(k), IRA, brokerage account and Social Security statement.

A retirement plan should answer a much more important question:

How will all of these resources work together to support the life you want?

That requires moving beyond individual investments and looking at the entire financial system.

Retirement Introduces Risks You Could Ignore Before

Investors often define risk as losing money in the stock market.

As retirement approaches, the definition becomes much broader.

There is:

Market risk: What happens if markets decline early in retirement?

Longevity risk: What happens if you live considerably longer than expected?

Inflation risk: Will today's income still support your lifestyle 15 or 20 years from now?

Tax risk: Could poorly timed withdrawals create unnecessary taxes?

Healthcare risk: How will future medical or caregiving expenses affect your resources?

Concentration risk: Are too many assets dependent on one company, sector or type of investment?

And perhaps the most overlooked risk:

Decision risk.

A strong portfolio can still produce disappointing results when withdrawals, taxes, Social Security, healthcare and investment decisions are made independently rather than coordinated.

The Sandwich Generation Adds Another Layer

Gen X also occupies a particularly demanding financial position.

Many are simultaneously planning their own retirement, helping adult children and assisting aging parents.

The report describes Gen X as the "sandwich generation," balancing responsibilities across multiple generations. 

That means retirement planning cannot simply be:

"How much money do I need?"

The better questions are:

• How much can I afford to help my children?

• What happens if a parent needs financial or caregiving support?

• How much should remain accessible?

• How do I protect my own retirement while still helping family?

• What do I ultimately want to leave behind?

These are financial planning questions not simply investment questions.

The Goal Changes

For decades, investors are told to maximize their retirement accounts.

Eventually, the objective has to change.

The question moves from:

"How much can I accumulate?"

to:

"How do I turn what I've accumulated into a sustainable life?"

That transition should ideally begin before the retirement date arrives.

Someone five or ten years from retirement still has valuable planning flexibility.

There may be opportunities to adjust contributions, strengthen reserves, reconsider investment risk, coordinate taxable and retirement accounts, evaluate Social Security timing and begin thinking about future withdrawal strategies.

Waiting until the first retirement paycheck is needed can significantly reduce those options.

The CPA Allies Perspective

A successful retirement is not simply the result of having accumulated a large portfolio.

It comes from coordinating investments, income, taxes, risk, healthcare and legacy decisions around a clear strategy.

Gen X has already demonstrated that it knows how to save and invest.

The next challenge is different.

It is making those resources work together for potentially 20, 30 or more years.

That requires more than a nest egg.

It requires a plan.

If you're approaching retirement and want to understand how your investments, income, taxes and long-term goals work together, CPA Allies can help you evaluate the complete picture.

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Source: Based in part on Approaching Retirement: Getting Gen X from Good to Great, a 2025 WSJ Intelligence and Equitable Thought Leadership Study of U.S. investors. The Wall Street Journal news organization was not involved in creating the study content.