Generation X

What is Generation X?

Generation X meaning refers to individuals born between 1960 and 1980. The precise data varies, but everyone believes that Generation X comes after the baby boomers. It is the predecessor of the generation of millennials, born between 1980 and 1994.

People who were born in Generation X are believed to have the same thoughts, opinions, beliefs, and tastes.

Overview of Generation X

The Generation Gap has become quite popular in the United States. The concept refers to the differences in the mindset and values of people from different generations. For instance, individuals born in the traditional generation have a completely different attitude than Gen X people. According to the research, there are around 65 million individuals falling in the Gen X category. It is also known as the latchkey generation since Gen X people had to stay alone at home after school. They were supervised only after their parents came back from work.

Generation X people share common characteristics with the sandwich generation. The latter emphasizes the middle-aged people who have to look after their old parents and children (as they decide to have children late). If the recent stats are to be concerned, then individuals from this generation are least likely to approach a financial advisor. Surprisingly, a majority of them carry Credit Card Debt.

Financial Condition

Research suggests that baby boomers are expected to transfer the property, assets, and wealth worth over $30 trillion to the Gen-x people. Gen-x people have only 16% of the world’s total wealth, while baby boomers possess 56% of the wealth. At the age of 35, gen-x people owned only 9% of the country’s wealth. The baby boomers, on the other hand, possessed around 35% of the nation’s wealth at the same age.

While responding to the survey, most of the gen-x people mentioned that they had enough retirement savings. They saved over $64,000 (combined) for the retirement life. Baby boomers had a retirement savings of more than $144,000. Millennials have the least retirement savings. Approx 9% of the individuals falling in the gen-x group did not have any retirement savings at all. Gen-x group also agrees that they are going to need at least $500,000 to secure their financial future, while millennials or gen-z people believed they needed $300,000 for financial security.

Issues Faced by Gen-X Group

Gen-x people started to work and invest during the economic recessions and low-investment-return period. 44% of gen-x people mentioned that the Great Recession did not affect them.

It is clear that Gen X people do not even have half the wealth the baby boomers had. This makes it difficult for them to cater to educational costs, children’s marriage, household expenses, healthcare, and more. What makes it even more challenging is the sandwich syndrome, in which, the gen-x people have to look after their children and their parents simultaneously. This leads to financial pressure. That’s probably the reason why the Gen X people have borrowed the highest average debt.