Why Gen X is the next big opportunity for advisors

The Social Security Trustees’ 2024 report delivered a sobering update: the combined Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) Trust Fund is now projected to be depleted by 2034—one year earlier than previously anticipated. At that point, only 81% of scheduled benefits will be payable, down from 83% in last year’s report.¹

At the same time, the Great Wealth Transfer is in full swing. Cerulli projects that wealth transferred through 2048 will total $124 trillion, with $105 trillion expected to flow to heirs. Gen X will play a huge role in this transfer of wealth.²

We see statistics like these all the time. But here’s what matters: Gen X needs guidance. Many haven’t saved enough for retirement or prepared for the wealth they stand to inherit. And that double threat presents a double opportunity for advisors who are willing to build relationships with Gen X today.

This isn’t just a funding issue or a planning gap—it’s a generational challenge. Advisors who step in to help Gen X make smart decisions about future wealth have the chance to make a real difference, while also positioning their practices for long-term growth.

A looming Gen X retirement shortfall

The oldest Gen Xers (those born between 1965 and 1980) are now seven years from full retirement age. Their financial outlook reveals gaps:

• Average defined contribution account balance: $182,100³
• Estimated income at a 4% withdrawal rate: $7,284 annually, or $607 monthly
• Average Social Security benefit (current): $1,976 per month⁴
• Combined projected retirement income: $2,583 per month

That might sound manageable,until you compare it to reality. According to the U.S. Bureau of Labor Statistics, the average household spent $77,280 annually, or about $6,440 per month, in 2023.⁵

This creates a monthly income gap of $3,857. And this calculation assumes no changes to Social Security benefits.

But we know changes are coming. If Gen X enters retirement around the time projected Social Security reductions take effect, their benefit could drop to 81% of the current level—about $1,600.56 per month. That would leave them with just $2,207.56 in total monthly income, widening the gap to $4,232.44.

Gen X retirement income gap comparison

Preparing Gen X to inherit

In just the next decade, Gen X households are projected to receive about $1.4 trillion annually, inheriting more than any other generation in the near term. This wealth won’t be evenly distributed—the top 10% of households are expected to account for 70% of all transfers, according to Cerulli.⁶ For financial professionals, this presents both a rare opportunity and a responsibility to help Gen X clients plan thoughtfully for an inheritance that could reshape their financial lives.

Adding urgency to the opportunity is a striking trend: 81% of new heirs plan to fire their parents’ wealth advisors.⁷ That means many Gen X inheritors—even those served by legacy advisors—are actively evaluating new advisors during their transition period.

Helping Gen X: two growth opportunities for advisors

Because of these two impending issues, Gen X represents not one, but two opportunities for advisors looking to grow their businesses.

First, mid-market Gen X investors, many of whom are behind on retirement savings, need significant education, support, and access to smart, diversified investment options. These clients may not have accumulated significant wealth yet, but they’re actively looking for guidance. According to the Federal Reserve, the median net worth for Gen Xers ranges from $247,000 (ages 45–54) to $364,000 (ages 55–64), and they’re approaching retirement now.

Second, Gen X also makes up a large share of high- and ultra-high-net-worth households that stand to inherit trillions over the coming decades. Yet many are unprepared to manage that wealth. They’ll need help navigating complex family dynamics, tax implications, and portfolio strategies—especially as they begin to take the reins of family wealth.

Waiting for either of these segments to come knocking won't work. Advisors who proactively build relationships with Gen X clients today, across the wealth spectrum, are positioning themselves to have a better chance at long-term business success.

The challenge? Many advisors feel they simply don’t have the time to engage this generation effectively, particularly those in the mid-market. But with the right technology, it’s possible to deliver meaningful, personalized value at scale, without adding extra hours to the day.

That’s where managed accounts come in. By consolidating investment management, tax optimization, and personalization into a single platform, managed accounts allow advisors to efficiently serve a broader range of clients with tailored strategies that reflect their goals, risk tolerance, and evolving life circumstances. Whether helping clients catch up on retirement planning or guiding them through complex wealth transitions, managed accounts offer the scale and flexibility advisors need to meet Gen X where they are and where they’re headed.

A call to action

The train is coming, but it hasn’t arrived yet. We still have time to help Gen X avoid worst-case outcomes and take control of their financial futures.

To seize the opportunity, advisors must:

• Educate early and often on income gaps, Social Security realities, and inheritance planning.
• Empower clients with scalable strategies that make their savings and future wealth work harder.
• Evolve their practices to meet Gen X where they are—using platforms and technology that scale without sacrificing personalization.

By meeting the moment, we don’t just help clients succeed—we build stronger, more resilient practices in the process. The next generation of retirees is looking for guidance. Let’s make sure they find it.

Deliver highly customized portfolios that align with investors’ goals, values, and tax needs—at scale: www.envestnet.com/wealth-management/unified-managed-accounts