- - How Much of Your Paycheck Should Gen X Save in 2026?

Jordan RosenfeldDecember 6, 2025 at 3:03 AM

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Gen Xers are between the ages of 45 and 60, with the oldest of them next in line to ride the retirement train while the youngest are still trying to save for kids’ college life goals and their own retirement.Find Out: The Most Common Retirement Mistake, According to an Expert

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How much of their paycheck should the average Gen Xer realistically aim to save in 2026, given their goals, current inflation and cost pressures?

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As Much as Possible

While there are plenty of “rules” for saving, according to Jay Zigmont, CFP and founder of Childfree Trust, any general rule about saving doesn’t consider the reality of each person’s situation.

“The goal should be to save as much as possible,” he said.

While that can vary from person to person, keep in mind that if you are in debt, paying that off should be priority. Once you are out of debt, the next goal is to build an emergency fund of three to six months of expenses. After that, the next goal is to max out your 401(k) accounts, or at least get the employer match.

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Focus on Fundamentals

Jessie Nino, a financial advisor with Edward Jones, said she prefers to stick to “some universal fundamentals” including always prioritizing putting money into a workplace retirement plan where there’s a match — because that’s free money, for one. For two, partnering with a professional financial advisor “can provide you with the customized advice that so many people crave in this increasingly automated world.”

Save With Intention by Setting Goals

The biggest mistake Gen Xers may be making “is either mindlessly saving or mindlessly spending,” Zigmont said. If you are saving money, you should have a goal and invest appropriately. It is possible to save either too little or too much if you don’t know what your goals are.

“For some people, retirement is their primary goal, yet for others it isn’t as much of a focus. The key is to set a plan and follow it,” he said.

Prioritize These Savings Vehicles

While there is no one-size-fits-all approach to savings vehicles, Zigmont suggested that Gen Xers be sure to have either a 401(k) or IRA, to take advantage of tax savings and receive employer matching funds.

Nino pointed out that if you qualify for saving money in a Roth IRA that money grows tax-free, “you don’t even claim it as income in retirement.”

A health savings account (HSA) is even more powerful at maximizing your dollars, by offering triple the tax benefits, Nino said. HSA money goes in tax-free, grows tax-deferred and if you use it for qualifying expenses, comes out tax-free again. It also never expires, so you can carry those funds into retirement even if you leave your job, and pull them out after age 65 for non-health related costs without penalty. Better still, you’re not obligated to pay back the expenses right away, so the growth can continue to compound before you pay back the expense in the future.

Make Attitude Adjustments

For Gen Xers who feel that they didn’t start saving soon enough, who are worried about saving the right amount, and so on, Zigmont said, “The key is to not worry about the past, or what you ‘should’ do, but to focus on what you can do doing forward.”

Additionally, rather than worrying about exact percentages, he said, “focus on making improvements every day.”

Consider Ways to Catch Up

Catching up starts with creating a budget, Nino said. “Look for categories in your budget that are inflated or where you feel like you can trim the excess. Then add any cost of living or merit increases in income to your workplace retirement plan.”

She said it’s “amazing how quickly we can find wasteful or mindless spending that can be rerouted to support our longer-term financial goals.”

Then, remember that those between age 50 and 59 are allowed to make an additional $7,500 per year in catch-up contributions. Additionally, increasing retirement savings by just 2% a year can take your deferral from 3% to 13% in just 5 years, Nino said.

Ultimately, the amount Gen Xers save in 2026 matters less than developing consistent habits, setting clear goals and steadily increasing contributions over time, one paycheck at a time.

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