Caught in the Middle: How Fixed-Indexed Annuities Can Help Gen X Stay on Track

If you were born between the mid-1960s and early 1980s, you're likely supporting kids on one side and aging parents on the other, all while trying to keep your own retirement plan alive in the middle. Here's what the data says about where Gen X stands, and how a fixed-indexed annuity (FIA) can help.

The Gen X Retirement Squeeze, by the Numbers

You may be more underprepared than you think. 53% of Gen Xers haven't done any retirement planning. Only 16% believe they've saved enough.¹

The "sandwich" pressure has a real cost. 34% of the Sandwich Generation are delaying retirement to support family. 22% are using retirement savings to do it.²

Market swings keep people on the sidelines. 54% of Gen Xers worry about another market crash. Only 19% think it's a good time to invest.³

You grew up without the old safety net. Gen X is the first generation to rely almost entirely on 401(k)s instead of traditional pensions, putting more of the outcome on market performance.

Why a Fixed-Indexed Annuity Might Fit Where You Are Right Now

If you're entering your 50s or 60s and trying to turn decades of saving into something durable, an FIA lets you participate in index-linked growth while locking in credited interest along the way, so gains you've already made stay yours, even if the market pulls back later.

Stability. An FIA can act as an anchor during a stretch of life that doesn't feel stable: career changes, caregiving responsibilities, and the pressure to make the right income decisions all at once.

Protection. Unlike money invested directly in the market, funds in an FIA are protected from market losses, subject to the terms and claims-paying ability of the issuing carrier. The savings you've worked decades to build aren't directly exposed to the next downturn.

Progress. You still get the opportunity for index-linked growth: the chance to diversify and potentially grow your savings further, without being fully at the market's mercy, subject to the terms and guarantees of the issuing carrier.

Flexibility. FIAs can offer multiple crediting methods, flexible income options, and optional riders (built-in or added at cost, subject to contract terms) to fit your specific situation, because one-size-fits-all rarely fits the Sandwich Generation.

Which of These Sounds Like Your Life Right Now?

Fixed-indexed annuities aren't just for people already retired. They're built to flex around the specific moment you're in.

You're a small business owner thinking about scaling back. Fluctuating income from seasonality or market conditions makes retirement timing hard to predict. An FIA can help convert current profits into more dependable income, reducing how much your retirement depends on the business performing well every single year.

You just received a severance package. A severance is a chance to reposition a lump sum for long-term income instead of just spending it down. An FIA can convert part of that lump sum into guaranteed lifetime income,* subject to the terms of the contract, while letting the rest pursue tax-deferred growth during the transition.

You left a pension-eligible job to care for a parent or family member. Walking away from a pension-track role creates real income uncertainty. An FIA can help replace some of that lost future income with a more predictable stream, while still giving you flexibility on when to turn income on.

You and your spouse just inherited a lump sum. Managing a sudden inheritance is more stressful than people expect. An FIA can help protect a portion of it from market volatility while turning it into future income, letting you balance near-term goals with longer-term legacy planning.

You consider yourself an aggressive investor. FIAs aren't just for conservative savers. Using an FIA to stabilize one portion of your portfolio can free you to take calculated risks with the growth-oriented assets you're comfortable with elsewhere.

*Guaranteed lifetime income riders, where available, are subject to the terms, conditions, and any additional cost of the specific contract and are subject to the claims-paying ability of the issuing insurance carrier.

The Bottom Line

Gen X didn't get the pension safety net their parents had, and the Sandwich Generation squeeze is pulling retirement savings in directions no one budgeted for. A fixed-indexed annuity won't solve every part of that, but it can give you a piece of your plan that isn't at the mercy of the next market headline.

Ready to talk it through? Whether it depends on your income needs, timeline, or what else is in your financial picture: that's a conversation, not a worksheet. Reach out to Cornerstone to talk through where you stand.

Let's talk about building your plan with intention.