AARP Flags 6 Gen X Retirement Mistakes as Average 401(k) Balance Reaches $222,100
Updated
Updated · AARP · Jul 13
AARP Flags 6 Gen X Retirement Mistakes as Average 401(k) Balance Reaches $222,100
2 articles · Updated · AARP · Jul 13
Summary
Gen Xers ended 2025 with an average 401(k) balance of $222,100, and AARP says many still risk undermining retirement by making six common financial mistakes.
Six pitfalls top the list: ignoring long-term care, overloading tax-deferred accounts, skipping catch-up contributions, investing too conservatively, claiming Social Security early, and cutting retirement saving to support adult children.
Long-term care stands out because Medicare does not cover it; AARP cites average nursing-home stays of nearly 14 months at roughly $10,000 a month, enough to drain savings.
Catch-up rules offer one fix in 2026: workers 50 and older can add $8,000 to 401(k)s beyond the $24,500 standard limit, while IRA savers can contribute an extra $1,100 above the $7,500 cap.
Social Security timing can also reshape income: claiming at 62 can cut benefits by as much as 30%, while waiting past full retirement age can raise payments up to 24% by age 70.