Gen X: The forgotten generation

Heard of Generation X? They’re the often-overlooked group stuck between the larger Baby Boomers and Millennials. But don’t be fooled — they’re more influential than people give them credit for.

Often called the ‘slacker generation’ or ‘MTV generation’, Gen X was born between 1965 and 1980. Now in their prime working years, the oldest are nearing retirement, while the youngest, in their 40s, are balancing careers and family life. Many are part of the “sandwich generation,” juggling caring for aging parents while still supporting their kids. This can take a toll on finances, making solid financial advice more important than ever.

What makes Gen X different

Gen X grew up with a great deal of independence, with the rise of dual-income families as more women entered the workplace. As a result, many were ‘latch key kids – learning to entertain themselves, become self-reliant and great problem solvers.

Here are some other unique characteristics that sets Gen X apart:

Loyal
Even though Millennials and Gen Z often get all the attention from marketers, Gen X is fiercely loyal to brands and financial institutions they trust

Adaptive
Unlike other generations that grew up either in the analog or digital world, Gen X experienced both, adapting to big changes like the rise of personal computers and the internet along the way.

Cynical
Having witnessed economic downturns like the dot-com crash and the 2008 financial crisis (and were among those hardest hit), Gen Xers have a healthy skepticism toward institutions and governments.

Tech-savvy
Growing up during the technology boom, they’re comfortable with digital solutions, including in the world of finance.

Realistic
They understand the importance of saving, but face a great deal of pressure, especially when it comes to preparing for retirement.

What’s jeopardizing retirement for Gen X

While Gen Xers are known for their hard work and resourcefulness, many are facing financial difficulties that could threaten their retirement goals.

1. 1. Sandwich generation
   Many Gen Xers feel the pressure of being the “sandwich generation” as they juggle the responsibility of caring for children who may still be living at home due to high housing costs or delays in starting their careers, while also caring for aging parents who need help with healthcare, housing or their own finances. This added responsibility makes it tough to save for retirement, putting a strain on their long-term financial goals.
2. 2. Cost of living
   Everyone is affected, but Gen Xers are feeling the pinch as they begin to think about retirement. And with wages stagnating in many industries, it’s harder for them to save for the future.
3. 3. Consumer debt
   On top of that, Gen X carries the most consumer debt of any generation—credit cards, student loans, and other liabilities. Some are even helping their kids with student loans, adding to the financial stress. All this debt, combined with higher living costs, leaves many with little to put away for retirement.
4. 4. Lack of pension plans
   Unlike Baby Boomers who had pension plans to fall back on, most Gen Xers don’t have that safety net. They’re relying on RRSPs, employer-sponsored plans, or other savings, but many didn’t start saving early enough to build up a comfortable nest egg.

What Gen X needs from their financial advisor

To tackle their financial challenges and plan for retirement, Gen Xers need a financial advisor who really gets them and can offer real solutions. Here’s how advisors can help:

• Build trust with honest communication
  Gen X tends to be skeptical and often feels overlooked by advisors. To win their trust, financial advisors need to be open, transparent, and ready to listen to their concerns. Being upfront about fees, risks, and potential outcomes of different strategies goes a long way in building a solid relationship.
• Personalized solutions
  Gen X is a diverse group, so one-size-fits-all advice just won’t cut it. Advisors need to understand each client’s unique situation—whether they’re dealing with debt, supporting kids or aging parents, or struggling with rising costs—and create customized financial plans. Offering flexible strategies for debt reduction, saving for retirement, and balancing financial responsibilities will help Gen X feel more in control of their financial future.
• Empathy and understanding
  Gen X faces a lot of pressure – supporting multiple generations, dealing with career uncertainty, and handling rising living costs. Advisors who understand these challenges and show empathy can create stronger, more trusting relationships. Offering realistic solutions to these tough situations is key to helping them feel more confident and less stressed about their finances.
• Tech-savvy with a personal touch
  Gen X grew up during the tech boom, so they’re comfortable using digital tools for things like online banking, investing, and budgeting. But they also value personal interaction and real guidance. Financial advisors who can blend the convenience of digital tools with personalized, human-centered advice will be the most successful in connecting with this generation.

Putting Gen X in the spotlight

Generation X faces unique financial challenges, like rising costs and supporting both kids and aging parents. But they’re also at the peak of their earning power and known for being hardworking and adaptable. With the right financial plan and an advisor who understands their needs, Gen X can feel more secure about their future. It’s time they get the attention they deserve.

---

Get the right financial advice

Your financial advisor can develop a tailored strategy that aligns with your retirement goals, risk tolerance and financial situation. They’ll help you assess your current assets, liabilities, income sources and expected expenses in retirement, taking into consideration market volatility and the potential impact of economic conditions.