Four out of five Generation X 401(k) participants—part of a generation born between 1965 and 1980—are not very confident they will be able to maintain their current standard of living in retirement, according to the latest Cerulli Edge—U.S. Retirement Edition. Recordkeepers and advisors, if they are not already doing so, should be taking steps to provide this participant cohort with advice and guidance to help them navigate questions and optimize their savings during their remaining work years.

With two-thirds of Gen X 401(k) participants having less than $100,000 in individual retirement assets, it is not surprising that many do not feel they will be able to maintain their standard of living in retirement. Members of this generation are entering a critical window in which a sustained bear market or recession could significantly impact when and with how much they retire.

Like most 401(k) participants, Gen Xers need advice and guidance for saving during their remaining accumulation years and preparing to manage their savings in retirement. However, the majority (58%) of Gen Xers are approaching this critical period without an advisor to help them plan for retirement, and nearly half do not feel qualified to choose their own retirement investments.

Of the 58% of Gen X 401(k) participants who do not work with an advisor, 32% say the fees are not worth it, and 29% say they don’t know how to find an advisor. “Given this difficulty in finding an advisor and the belief that they cannot afford one, an opportunity exists for both recordkeepers and advisors to engage with participants, identify their needs, and make them aware of how they can access help with planning and investment advice,” says Elizabeth Chiffer, research analyst.

65% of Gen Xers without an advisor already rely on their retirement plan recordkeeper or employer as the main source of help with retirement planning. Cerulli believes it is important for recordkeepers and advisors to work together to help these individuals chart a path forward to boost retirement readiness and confidence.

Cerulli recommends that advisors and recordkeepers leverage perspectives from their current clients to demonstrate the value of their services to Gen Xers. “75% of Gen X 401(k) participants who work with an advisor say their help with retirement planning is very valuable; specifically, their assistance with creating a savings or drawdown strategy and with understanding how and when to claim Social Security,” says Chiffer. “It’s imperative advisors and recordkeepers work with pre-retirees to create a plan for optimizing their remaining earning years and transitioning their portfolio to provide for their needs in retirement,” she concludes.