This article was updated on July 12, 2018.

In the midst of their prime earning years, many people from Generation X have already started saving for retirement, but they often feel anxious about whether they're saving enough or putting their money in the right places. The competing pressures of saving for kids to go to college, caring for an aging parent, or meeting their daily budget may mean that retirement planning takes a backseat.

In a recent ADP Research Institute Study, we found that only 60.6 percent of employees aged 35-44 , also know as Generation X, were currently saving for retirement, and those who were contributing to a plan were only doing so at a rate of 6 percent of their current compensation. It's critical for employers to ensure they're communicating with their Generation X employees about the importance of saving as much as they can for retirement in this strong income-producing time in their careers.

To cut through the fog of uncertainty and help Gen X employees prioritize their future financial security, employers might consider offering the following ideas:

  1. Suggest an annual financial health check-up that considers personal savings, life insurance, investments, credit card debt, mortgage, and retirement planning. Employers might even consider bringing plan experts into the workplace to hold brief workshops.
  2. As a part of their "big-picture" financial planning, encourage employees to consider having their retirement plan contributions automatically escalated. If available as part of the plan, participants can elect to have their employer increase their retirement contribution automatically, helping them to save a little more each year.
  3. Remind Gen Xers that while they can take out loans for college tuition or to purchase a home, they cannot borrow for retirement. In fact, it's incredibly important to take advantage of these years, rather than waiting for the catch-up contribution age of 50. Plus, continuing to contribute throughout their careers will maximize the benefits of compounding interest and may mean bigger retirement savings down the road.

Engage your Gen X employees by helping them to strike a financial balance that meets the demands of today while planning for the concerns of tomorrow.

Want to know more? Help all generations in your office meet their retirement goals.

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