Gen X Could Become the First Generation to Rely on Universal Basic Income, Analysts Warn

The Brutal Numbers Behind Gen X’s Retirement Crisis

The financial reality for Gen X is absolutely staggering. Gen X households have saved relatively modest amounts for retirement, with various studies showing median savings ranging from tens of thousands to over $100,000. Even worse, the bottom half of Gen X households has almost nothing saved for retirement. When looking at the median, the bottom quartile has $200 saved for retirement, and the second quartile has $4,290.

The median account balance was far scarier: $10,000–and 40% had zero savings. Only 14% of Gen Xers believe they’ve saved enough for retirement. Think about that for a moment. More than eight out of ten people in this generation know they’re heading toward financial disaster.

Caught in the Sandwich Generation Squeeze

Many Gen Xers are the “sandwich generation,” supporting both their kids and aging parents at once. That dual responsibility is draining savings, delaying retirement, and forcing risky financial decisions like early 401(k) withdrawals. Over 60% state that they are unprepared for retirement, while approximately 72% continue to support dependents-they are in between generations.

Their credit card balances are substantial, with Gen X carrying significant debt loads comparable to other age groups. Gen X carries a substantial portion of total consumer debt, according to various financial analyses. These numbers paint a picture of people drowning in debt while trying to keep everyone else afloat.

The Great Pension Disappearance Act

Gen X was the first generation to approach retirement without the safety net of traditional pensions. Only fourteen percent of Gen X is covered by a defined benefit plan, and this low level of coverage is fairly consistent across gender and race. Only about half (55%) of Gen Xers participate in an employer-sponsored retirement savings plan.

The shift from guaranteed pensions to self-directed 401(k) plans happened right as Gen X entered the workforce. They became the guinea pigs for a retirement system that clearly isn’t working. Gen X entered the workforce during the transition from pensions to 401(k)s, often without employer guidance or tools.

AI and Automation Target Middle-Aged Workers

Unlike previous waves of automation, which had the strongest effect on middle-skilled workers, AI displacement risks extend to higher-wage earners. With almost 900,000 private sector employees having already lost their jobs and another 300,000 federal government employees out of work by the end of 2025, white-collar workers are under threat from many sides.

Older workers are encouraged to protect their finances in this unstable environment but as research shows, it’s impossible to prepare for a bout of unemployment extended indefinitely by age discrimination in the hiring process. Older workers might see the AI writing on the wall and decide to pack up and retire. The technology that promised to make life easier is now pushing experienced workers out of their careers.

Social Security’s Looming Meltdown

The Social Security Trustees Report showed that without legislative action, benefits could be reduced to 79% of scheduled amounts by 2033. Furthermore, 43% plan to claim these benefits early – fearing the program will run out of money – higher than 24% of Boomers and 37% of Millennials.

This creates a vicious cycle. Gen X workers are so terrified about Social Security disappearing that they’re claiming benefits early, which reduces their monthly payments for life. Just 10% of Gen Xers plan to wait until age 70 to claim Social Security, the age that would maximize payouts. They’re essentially locking themselves into poverty because they don’t trust the system to exist when they really need it.

The Massive Savings Gap Reality Check

Gen Xers reported that on average they will need roughly $1.1 million in savings to retire comfortably, yet they expect to stop working with only about $660,000 saved–a savings gap of around $450,000. Schroders’ 2024 U.S. Retirement Survey highlights this gap, revealing that Gen Xers anticipate needing $1.07 million but expect to retire with only $602,944 – a $466,802 deficit.

By the time someone reaches retirement age, Fidelity suggests having at least 10 times your salary in retirement savings. So, making $70,000 a year would mean having $700,000 in retirement accounts by the time you stop working. Most Gen Xers aren’t even close to hitting these targets.

Multiple Economic Disasters Shaped Their Careers

Gen X has experienced several financial setbacks throughout their prime working years. From the dot-com bubble to the 2008 financial crisis and recent global economic disruptions, many factors have challenged their ability to save money. Their resilience has been continually tested as they’ve weathered multiple economic downturns and periods of uncertainty.

Many Gen-Xers have also faced layoffs or reduced incomes during critical times. With the stock market’s major fluctuations throughout the years, keeping up with retirement contributions has been difficult. Each financial crisis hit them during their peak earning years when they should have been building wealth.

The Rise of UBI Pilot Programs Across America

Basic income programs are gaining momentum nationwide as local governments and nonprofits test this bold alternative to traditional welfare. According to Stanford University’s Basic Income Lab, which tracks ongoing UBI or GBI pilot programs across the U.S., citizens in 18 states, as well as the District of Columbia, have taken part in some form of basic income study this year.

Although no country has fully implemented a nationwide Universal Basic Income (UBI) plan as of July 2025, some continue to experiment with pilot programs or targeted, UBI-like versions known as Guaranteed Basic Income (GBI) to address either country-specific or universal issues. The groundwork is being laid for what might become a necessity for millions of struggling Americans.

Age Discrimination Compounds the Crisis

Statistics show that workers over age 50 experienced the highest rates of long-term joblessness. There are some consistent patterns concerning AI exposure, with women and college-educated individuals more exposed but also better poised to reap AI benefits, and older workers potentially less able to adapt to the new technology.

In contrast, older workers – typically occupying more senior or specialized roles – show little anxiety about AI disrupting their employment. However, this confidence might be misplaced. The survey underscores that just 10% of respondents aged 55 and older see AI as a major threat to their jobs within the next two years. The disconnect between perception and reality could leave many unprepared for what’s coming.

The Perfect Storm of Financial Desperation

Amy Castro said that the heightened interest in unconditional cash programs has been driven by “pervasive economic strain.” “Americans are working more and making less to the detriment of our health, well-being, and relationships,” she said. “Living with chronic financial stress like not knowing if you will receive enough shifts at work to make rent drives poor public health outcomes, food insecurity and a range of mental health stressors.”

Almost half of Gen Xers surveyed (48%) say it’s going to take a miracle to retire securely. In fact, half (48%) of Gen Xers, or Americans between the ages of 44 and 59, say they have not done any retirement planning, according to the recently released Schroders 2024 U.S. Retirement Survey. They’re not just unprepared financially – they’re psychologically defeated.

UBI: From Radical Idea to Economic Necessity

“UBI differs quite radically from welfare as we know it because it goes to all without means tests or work requirements,” said Juliana Bidadanure, founder of the Basic Income Lab. “It builds a robust floor that prevents all from falling too low, and it achieves that with a principle of radical inclusivity (everyone is opted in automatically).”

Gen X may be about to make history, but not in the way they hoped. Caught between rising job losses, disappearing social safety nets and growing automation, many in this generation are facing a terrifying possibility: being pushed out of the workforce with no apparent way back in The question isn’t whether UBI will happen – it’s whether it will happen soon enough to save Gen X from becoming America’s lost generation.

Conclusion

Gen X stands at the edge of an unprecedented cliff. They’re the first generation to face retirement without pensions, the first to navigate their peak earning years through multiple economic disasters, and potentially the first to need universal basic income just to survive. The numbers don’t lie – with median savings of just $40,000 and nearly half having done no retirement planning at all, this isn’t just a personal finance problem anymore.

The pilots programs spreading across 18 states aren’t just experiments – they’re dress rehearsals for what might become the only thing standing between millions of Gen Xers and destitution. What do you think – is UBI the inevitable future for a generation that got dealt the worst economic hand in modern history?

What Happens If We Do Nothing?

Let’s be brutally honest about where this train is heading if nobody pulls the emergency brake. We’re looking at roughly 65 million Gen Xers hitting retirement age over the next 15 years, and most of them are financially unprepared in ways that would make your grandparents weep. Without some kind of intervention – whether it’s UBI, expanded Social Security, or something we haven’t thought of yet – we’re staring down a humanitarian crisis that’ll make the 2008 housing crash look like a practice run. Think about it: millions of elderly Americans unable to afford housing, healthcare, or food isn’t just morally devastating, it’s economically catastrophic. The burden will cascade onto younger generations already struggling with their own financial nightmares, state welfare systems will buckle under the weight, and we’ll see poverty rates among seniors skyrocket to levels not seen since before Social Security existed. Some economists are already calling it the “Silver Tsunami” – and unlike actual tsunamis, we can see this one coming from miles away. The question isn’t whether we can afford universal basic income anymore, it’s whether we can afford not to have it.

The Political Reality: Who’s Actually Fighting for This?

Here’s where things get messy – and frankly, kind of depressing. Despite the overwhelming evidence that Gen X needs some form of financial safety net, the political will to implement UBI remains shockingly weak on both sides of the aisle. Republicans generally view it as socialist overreach that’ll destroy work incentives, while many Democrats worry it’s too radical for mainstream voters and prefer expanding existing programs instead. The few politicians championing UBI – like Andrew Yang during his presidential run – get labeled as fringe candidates with pie-in-the-sky ideas, even though the math clearly shows we’re headed for disaster without bold action. Meanwhile, powerful lobbying groups representing industries that benefit from desperate workers actively fight against any form of guaranteed income, pouring millions into campaigns to keep the status quo intact. What’s particularly frustrating is that we’re running out of time for political debates and theoretical arguments – Gen X’s oldest members are already approaching 60, and we still don’t have a concrete plan beyond hoping they’ll somehow figure it out themselves. The disconnect between what experts say needs to happen and what politicians are willing to do has never been wider, leaving an entire generation wondering who, if anyone, is actually looking out for them.