Born between 1965 and 1980, Generation X has often been referred to as the forgotten generation, situated between the baby boomers and millennials. Yet this group, now aged 44 to 59, quietly bears the burden of major societal shifts, economic pressures, and family responsibilities that are reshaping what it means to be middle-aged.
Gen Xers are not digital natives like Gen Z, nor do they command the nostalgic reverence accorded to Baby Boomers. But Gen X has just reached a significant milestone: they are now the highest-earning generation, with household income averaging $150,000. This may seem like a milestone in financial security and success, but beneath the surface, the picture is far more complicated.
Stretched Thin
Gen Xers are often referred to as the sandwich generation, not because of their birth order, but because they are financially and emotionally caught between caring for aging parents and supporting their children. In fact, 56% of Gen Xers reported that they are financially supporting their parents, children, or both, according to a recent survey conducted by Nationwide. These dual responsibilities are becoming increasingly demanding, the survey found that 56% who have parents or children living with them, 21% have taken on a significant level of debt to support others, 35% have reduced their nonessential spending, and 23% have had to push off saving for their retirements to assist their parents or kids.
In the United States, 70% of homeowners aged 50 to 54 have at least one child still living at home with them. This trend isn’t confined to America. In Italy, the percentage of 18-to-34-year-olds living with their parents rose from 61% to 68%. In Spain, it remains close to 50%, with the average age of children leaving their family home at 29 years old.
Education and Work
Ironically, Gen X is also the first generation where over half the population holds a college degree. A milestone that, in theory, should have secured this generation higher lifelong earnings and financial stability. Yet degrees come with ballooning student debt, increased job competition, and an evolving labor market that has often undervalued mid-career workers.
Still, Gen X has assumed positions of leadership and influence. The average age of a Fortune 500 CEO is 59, putting many Gen Xers at the helm of major corporations.
With an average of $256,000 in publicly traded securities, Gen X leads all other generations in terms of shareholders and has an average of $176,000 in cash and deposits, trailing only Baby Boomers.
The Great Wealth Transfer
Looking ahead, Gen X is poised to be the beneficiary of the “Great Wealth Transfer,” where $84 to $90 trillion is expected to be inherited from older generations by 2045. This influx of assets will allow beneficiaries to reshape their investment portfolios, receive properties, donate to charities, or even take a much-needed vacation. Establishing a plan with an investment and tax professional, as well as having an open discussion with your loved ones on what you will be inheriting, is essential.
Financial Challenges and Lost Opportunities
Much of Gen X’s financial prime, their 30s and 40s, aligned with a historically rocky period in the global economy. During this time in life, most people are buying their first homes and starting a family, while Gen X had to face the housing market crash and the global financial crisis from 2007 to 2009. Gen X has experienced stagnating wages, extreme market volatility, and a distressed job market for most of their lives.
Furthermore, Gen X was expected to be the dominant demographic that would thrive under the promise of a 401(k)-based retirement system. Instead, they now face the harsh reality that by 2033, Social Security may no longer be their social safety net. The top 25% of Gen Xers have saved over $250,000 for retirement, while those earning $44,000 per year, or 25% of Gen X, have saved $5,000 or less, and 45% disclosed that they haven’t even begun saving for retirement.
Conclusion
While Gen X may not dominate the current cultural conversation, their story is critical to understanding today’s economic and societal landscape. They are overworked, undervalued, and facing an uncertain future. Yet, these latchkey kids, raised in an analog world, found themselves amid the most significant technological transformation in history and navigated it with instinct and resilience. They implemented a focus on work-life balance that hadn’t been seen before, scaled up philanthropic practices, and played a crucial role in developing many start-ups in the late 1990s, turning them into multi-billion-dollar enterprises.
For this selfless generation, utilizing 401(k)s, pension plans, and adequate savings was put on the back burner, and their time to retire is approaching. In the last two years, 30% of Gen Xers who said they have not started contributing to their 401(k) started contributing the maximum amount they could. It is never too late to start thinking about your future and establishing a realistic retirement plan.
