Generation X reports healthier financial habits than younger generations but experiences financial anxiety similar to Generation Z and millennials, according to a recent study conducted by the FINRA Investor Education Foundation.
“Gen Xers are faring better than younger generations and comparable to boomers on the retirement measures we examined,” Gerri Walsh, president of the FINRA Investor Education Foundation, told Yahoo Finance.
Despite signs of good financial health, such as higher retirement savings and lower debt strain compared to Gen Z and millennials, Gen X’s perception of their financial situation remains more negative, aligning more closely with younger cohorts than with baby boomers.
The study, part of the FINRA Foundation’s 2021 National Financial Capability Study, highlights the unique challenges Gen Xers (born between 1965 and 1980) have faced throughout their lives. From the dot-com bubble and the 9/11 attacks to the Great Recession and the COVID-19 pandemic, Gen X has weathered significant economic upheavals at critical stages in their careers.
The survey focused on key areas of financial health, including retirement savings, debt, and perceptions of financial well-being. While Gen X reports the healthiest behaviors in terms of retirement savings—60% own a retirement account, with 55% participating in employer-sponsored plans—many still struggle with perceptions of financial insecurity. Only 25% of Gen Xers reported high financial satisfaction, a rate similar to Gen Z (25%) and lower than millennials (29%). By contrast, 44% of baby boomers reported high financial satisfaction.
Although Gen X shows steady participation in retirement savings, including both employer-sponsored and individual retirement accounts, they are not immune to debt. Gen Xers carry substantial mortgage and credit card debt, with 39% reporting credit card balances and 33% holding auto loans. While their student loan debt (24%) is lower than that of younger generations, it still represents a significant burden. More than half of Gen Xers with student loans express concern about their ability to repay.
Gen Xers also report relatively low levels of debt strain, such as late mortgage payments or contact from debt collectors, compared to younger generations. However, many express concerns about having “too much debt” despite generally healthy financial behaviors.
The study suggests that while Gen X has been more successful in accumulating assets and managing debt compared to younger generations, their financial stress should not be underestimated. As they approach retirement, the lingering effects of past economic crises and ongoing debt obligations may continue to affect their financial well-being and overall satisfaction.