4 Reasons 1 in 3 Gen Xers Have Extreme Financial Stress
Written by
Jordan Rosenfeld
Edited by
Molly Sullivan
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Generation X, the “sandwich generation” so-named because many are caring for both aging parents and their own adult or teenaged children, are not having an easy time financially. In addition to their caregiving duties, they’re trying to survive high inflation and plan for retirement at the same time. A recent GOBankingRates survey on banking revealed that, in fact, 1 in 3 Gen Xers feel “extremely stressed” when it comes to their savings.
GOBankingRates explored some of the financial reasons Gen Xers are feeling more stressed than others.
Limited Savings
Of all the generations surveyed, Gen Xers reported the most stress around their savings. Nearly 36% of Gen Xers ages 45 to 54, and almost one-quarter of those ages 55 to 64 reported feeling extreme stress around how little they have in savings, a big concern as this generation is highly likely to experience emergencies given their sandwich status and their own aging.
When asked if they thought they could add $2,000 to their savings in the coming year, nearly 21% of Gen Xers ages 45 to 54 said they did not think they could do so, and 20% of those ages 55 to 64 said the same.
Retirement Planning
Another area of concern for Gen Xers is their retirement savings and planning. According to a 2024 GOBankingRates survey on retirement, Gen Xers aren’t facing an easy retirement. Almost 38% of the Gen Xers in the 45 to 54 age range, and 43% of those ages 55 to 64 reported that they anticipate having to work part time in retirement just to pay their bills.
High Housing Costs
While many Gen Xers do own homes, in comparison to older generations, they’re actually behind when it comes to homebuying. A recent report by the National Association of Realtors revealed that 54% Gen Xers were first-time homebuyers in 2023. And Gen Xers have taken longer to enter their higher-earning years than millennials.
Depending on where Gen Xers live, too, they may be having more or less housing related stress. Gen Xers who live in California, for example, have an average monthly mortgage cost of $4,347. Whereas, Gen Xers who live in Mississippi have an average monthly mortgage cost of just under $1,000.
Additionally, according to the GOBankingRates retirement survey, more than half of Gen Xers of all ages reported that they will have to downsize in retirement, likely to save on costs.
A Greater Debt Burden
Debt also looms heavily over Gen Xers heads. According to a Lending Tree study, they lead the pack of debt holders of non-mortage debt for all generations, with an average of $33,859. Gen Xers are also 39% more likely to have credit card debt than other generations, the kind of debt that is the most difficult to get out from under due to high interest rates.
It’s no wonder Gen Xers are feeling the financial pressure.
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