Generation X is cynical (shock!) about its financial future.
The generation of flannel and grunge are heading into their highest earning years yet, compared to other generations, Gen Xers have also accumulated the most debt.
In fact, a recent LightStream survey found that one in four Gen Xers who are currently in debt say they are not confident in the way they manage it, and 22 percent don’t see a way out.
While every demographic group is carrying significant debt, Experian reports that the 2017 average non-mortgage debt level across generations ranged from $6,963 (Gen Z: Born after 1996) all the way up to $30,334 (Gen X).
“Dipping into savings or cashing out investments are certainly options to reduce debt,” Todd Nelson, senior vice president at LightStream, a division of SunTrust Bank, said in a statement. “But this may be difficult, particularly for Gen Xers. They’re often financially stretched. They’re juggling to help their adult children and support aging parents, while also trying to save for emergencies and retirement.”
Generation X is often referred to as the new “sandwich generation” because many of them are responsible for both raising their own children and caring for their parents.
Just one-third of Generation X investors are confident in their ability to address financial concerns and meet their long-term financial goals—the lowest among the generations, according to a 2017 MFS Investment Management survey that mirrored the LightStream results.
Fully 85 percent of Generation X respondents to the MFS survey said they look to their financial advisor for retirement savings advice, he added, and approximately 60 percent say they will rely on their advisor more in the coming years.
Seven in 10 Generation X investors say they have delayed, or expect to delay at least one major life event, such as buying a house, saving for their children’s education, starting a new career and ultimately, retiring.