FINRA Foundation Scholars Consider Financial Health of Generation X

In a Financial Capability Insight Report, FINRA Foundation researchers described the financial behaviors and perceptions of Gen Xers—those born between 1965 and 1980. 

In How Gen X Compares Financially to Other Generations: Doing Alright but Feeling Bad, the researchers reviewed 2021 state by state survey data comparing retirement savings (including employer-sponsored accounts and non-employer accounts) and debt (including mortgages, credit card debt, auto loans, medical debt, alternative debt like payday loans and student loans). The authors characterized Gen Xers as "doing fairly well financially ... in terms of retirement preparedness and debt management." They reported that "Gen Xers report[ed] lower anxiety than either Gen Z or millennials, but higher levels than baby boomers."

On an episode of FINRA Unscripted, the authors described the formative experiences that shaped Gen Xers financial perspectives, including 9/11, the dot com bubble and the COVID-19 pandemic.

Mr. Mottola, FINRA Foundation's Research Director, described Gen X as the first generation to rely primarily on 401(k)-type retirement accounts rather than traditional pensions, which has left many with insufficient savings for retirement. He said that while Gen X is generally on track with home ownership and retirement participation, individuals report high levels of financial anxiety and are burdened by significant debt—particularly student loans, often taken on for their children's education. He said that 56 percent of Gen Xers with student loans are concerned about their ability to pay them off, making them the most "worried generation" regarding student debt repayment.

Ms. McLaughlin, a 2024 Ketchum Visiting Scholar, and Director of Community Outreach, explained that the financial struggles of Gen X are compounded by their unique "sandwich generation" status. She said that many are simultaneously supporting aging parents and dependent children. She pointed to the study's findings that Gen X holds 25 percent of the country's investable assets—far less than Baby Boomers, who control 60 percent—and emphasized that these generational wealth disparities are driving financial stress among Gen X.

Mr. Ko described racial and gender disparities within Gen X, noting that women and minorities within the generation generally report higher levels of financial insecurity and lower retirement savings. He added that while 60 percent of Gen Xers report owning retirement accounts, only 47 percent of Black respondents and 58 percent of Hispanic respondents report such ownership.