Six ways Gen X can build retirement savings

Many Gen X Australians are now in their peak earning years and retirement is not too far away.

 

While many people in this age group are earning more than ever, not everyone is on track to achieve the level of financial security they would like in retirement.

 

This stage of life can be an important opportunity to review finances, adjust strategies, and potentially strengthen your long-term position.

 

 

1. Review your finances and goals
 

A useful starting point is to take stock of your current financial position. This may include reviewing your budget, listing assets and liabilities, and estimating your net worth.

 

Benchmarks can also help provide context. The Association of Superannuation Funds of Australia (ASFA) estimates that a ‘comfortable’ retirement lifestyle currently requires annual spending of around $55,923 for a single person and $78,566 for a couple, assuming home ownership. 

 

These figures are general guides only and individual needs will vary depending on lifestyle, health, and personal circumstances.

 

 

 

 

Managing debt can play an important role in retirement planning. Carrying large liabilities such as a mortgage or high interest debt into retirement may place additional pressure on savings once regular income reduces.

 

Some people may choose to use their peak earning years to reduce outstanding debt. When considering new financial commitments, including supporting adult children, it may be helpful to assess how these decisions could affect long term financial goals.

 

 

 

 

Superannuation is a key component of retirement savings for many Australians, including Gen X investors approaching their later working years. Reviewing contributions and understanding available options may help improve your retirement outlook.

 

For example:

 

Salary sacrifice contributions allows you to contribute part of your pre-tax income into your super where contributions are generally taxed at concessional rates

After tax contributions may also be made, depending on your circumstances

Contribution caps apply. For instance, the concessional (before tax) contributions cap is $32,500 per year for the 2026–27 financial year. 

 

It may also be worth reviewing your super fund’s investment options, fees, and overall strategy to ensure they align with your goals and time horizon.

 

 

 

 

For some Australians, the family home represents a significant asset. In certain cases, downsizing may free up cash and reduce ongoing costs.

 

If eligible, individuals aged 55 or older who have owned their home for at least 10 years may be able to contribute up to $300,000 from the sale proceeds into their super under the downsizer contribution rules.

 

Eligibility requirements and timing rules apply, and this type of decision can affect other financial outcomes, such as government benefits.

 

 

 

 

While super is central to retirement planning, some people also invest outside of super to build additional wealth.

 

Shares and ETFs, for example, can provide exposure to investment markets and may generate income through dividends. Dividend payments from such companies are typically paid twice a year in Australia. 

 

Diversification, costs, and time horizon are all important factors to consider when evaluating investment options.

 

 

 

 

You don’t have to navigate this on your own. The decisions you make in your 50s can shape your retirement. Many people find it helpful to speak with a qualified adviser to better understand their options and develop a strategy tailored to their circumstances.

 

 

 

 

 

 

Vanguard

08 July 2026
vanguard.com.au