Close Menu
SavvyDime
    What's Hot

    What is Zero-Based Budgeting?

    July 22, 2021

    Understanding Your Investment Risk Tolerance

    July 23, 2021

    5 Incredible Money-Saving Hacks

    August 9, 2021
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) Instagram RSS
    SavvyDime
    • Technology
    • Environment
    • Health
    • Lifestyle
    • Legal
    SavvyDime
    Home » Gen X Has the Largest Wealth Gap of Any Generation

    Gen X Has the Largest Wealth Gap of Any Generation

    By LaurenDecember 21, 20235 Mins Read
    Facebook Twitter Pinterest LinkedIn Email
    Elderly couple sitting on a bench looking out over the ocean
    Source: Christopher Furlong/Getty Images
    Share
    Facebook Twitter LinkedIn Email Copy Link

    Every generation has its own set of struggles to deal with, and it seems that the big one for Generation X is going to be retirement.

    Gen X has faced a unique set of challenges, making retirement harder to achieve than previously thought.

    Who Is Generation X?

    Source: Rolf Potts

    Generation X includes anyone born between the years of 1965 and 1980; those who played the first video games, loved Michael Jackson, and were just the right age to really appreciate the 90s.

    But while their upbringing may have been full of pop culture, now, when retirement is just around the corner, Gen X isn’t having nearly as much fun.

    Gen X Is Reaching Retirement, and They’re Not Ready

    Source: Schroders

    According to the 2023 U.S. Retirement Survey conducted by Schroders, Gen X, who make up 20% of the population, have the largest wealth gap of any age group.

    And more than 60% of them reported that they do not feel confident in their ability to retire anytime soon, even though, for some, it’s only a few years away.

    Other Generations Feel Much More Confident

    Source: Freepik

    Comparatively,  53% of baby boomers and even 49% of millennials said they absolutely feel confident that they will have the money they need for a comfortable retirement.

    It’s important to note that those statistics are just the perceptions of those surveyed, not the actual amount of money they have or will have for retirement.

    Why Are Gen Xers So Much More Pessimistic than Other Generations?

    Source: Freepik

    Realistically, there are millions of Americans who are in no way prepared for retirement. However, Gen X are especially worried as they were and are the generation of change when it comes to retirement.

    Gen Xers are the first generation not to receive a pension; in fact, only 14% of Xers have one. And while no generation after them got one either, millennials understood what that meant for savings before they even joined the workforce.

    Pensions Versus 401Ks

    Source: Graeme Robertson/Getty Images

    Baby boomers almost all got pension funds, which offered retirees monthly benefits for the rest of their lives.

    However, Gen Xers were the first to rely solely on 401Ks for retirement, which is an employer-sponsored program in which a person diverts some of their own salary for the future.

    Gen Xers Saw a Serious Increase in Costs

    Source: Eduardo Munoz Alvarez/Getty Images

    As well as losing the right to a pension fund, Gen Xers also saw an extreme increase in costs compared to the baby boomers.

    The rising price of college tuition, as well as health care costs, housing, and the general cost of living, simply meant more spending for Gen X than for their predecessors.

    Living in Today’s World

    Source: Kevin Dietsch/Getty Images

    Of course, it’s not just what happened when Gen Xers were younger that is affecting their ability to retire comfortably; it’s also what’s going on in the world right now.

    Historically, other generations could start saving for retirement in their 40s, but with inflation increasing throughout the country and the cost of living rising every year, it may be extremely challenging for a Gen Xer to catch up.

    Most Gen Xers Are Actively Saving for Retirement

    Source: iStock

    What’s especially frustrating for many Gen Xers is that they are actively saving for retirement; they just can’t get the money they know they will need to be comfortable.

    In fact, the average Gen X household only has $40,000 in savings. And as the National Institute on Retirement Security (NIRS) states that $1.1 million is the average for a dream retirement, it’s clear most Gen Xers are way behind.

    71% of Gen Xers Own Their Homes

    Source: Justin Sullivan/Getty Images

    One good thing that Gen Xers have going for them compared to the younger millennials is that 71% of them already own homes.

    However, financial experts say that having a slow-growing 401K and a home might not be enough for many Gen Xers to fulfill their dreams of retirement.

    Can Gen Xers Change the Tide?

    Source: @JenniferFraz25/X

    According to the NIRS, Gen Xers who checked “yes” in the box that asked if they didn’t feel confident in their ability to retire need to make adjustments to their spending and savings as soon as possible.

    While many Gen Xers are still looking after their own parents as well as their children, including paying for nursing homes, college tuition, and much more, if they want to retire, they will need to seriously cut back on any unnecessary spending.

    “The Dream of Retirement Is Going to Be a Nightmare”

    Source: Freepik

    Sadly, even though it seems Gen Xers are doing their absolute best to prepare for the imminent reality of retirement, it will be a real struggle for many.

    Executive director of the NIRS, Dan Doonan, said it clear as day: “The American dream of retirement is going to be a nightmare for too many Gen Xers.”

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Lauren

    Comments are closed.

    Trending

    Walmart Lawsuit Results in the Retailer Paying $35 Million to Former Employee it Accused of Fraud

    November 27, 2024

    Advance Auto Parts Closes Hundreds of Stores and Lays Off Staff to Avoid Bankruptcy

    November 27, 2024

    Rare Comic Books That are Extremely Valuable Today

    November 26, 2024

    Which Family Dollar Stores are Closing?

    November 26, 2024
    Savvy Dime Makes You Savvy

    Savvy Dime provides personal business and financial analysis on the topics around the world impacting your wallet and marketplace.

    We are dedicated to delivering engaging and accurate news content that keeps you informed and equips you with the information you need to make practical personal financial decisions and grow your wealth.

    savvy dime logo
    Facebook X (Twitter) Instagram
    • Home
    • About Us
    • Contact Us
    • Privacy Policy
    • Editorial Standards
    • Terms of Use
    © 2025 Savvy Dime and Decido.

    Type above and press Enter to search. Press Esc to cancel.