Gen X can add one more financial problem to their list

Gen Xers are already dealing with their own economic concerns.FG Trade/Getty Images

• Social Security funds are expected to start running out when current 58-year-olds retire.

• Generation X is already in financial difficulties, with high debt and financial insecurity.

• It is yet another blow to the small and forgotten middle generation.

A storm is brewing Generation X.

O forgotten generation it’s already gone Silently Facing Economic Headwindsand now they may end up bearing the brunt of the looming reform crisis.

This is because, together, the two main Social Security the funds will only be able to pay all benefits until 2035; the Old-Age and Survivors Insurance Trust Fund, one of the main Social Security funds, will begin to run out in 2033.

That’s bad news for Gen Xers who are currently ages 56 to 58: In 2033 and 2035, they will begin turning 67, making them eligible for Social Security – and may end up with reduced benefits.

In other words, by the time current older members of Generation X are ready to retire, their Social Security benefits could begin to decline. This could be a real problem for a generation already suffering in silence. Generation X – born from 1965 to 1980 — were considered the country’s “neglected middle child” by Pew Research Center.

Generation X is more in debt and more concerned about finances than other generations

You can attribute Gen X’s invisibility to the fact that, according to Library of Congress, they are the smallest generation in terms of population. Their difficulties were overshadowed by millennial generation‘ huge ranks and prominent problems, and the huge spike in the soon-to-retire boomer population.

But Generation Xers have already been quietly dealing with some financial insecurity. In July 2023, Business Insider — in partnership with YouGov — surveyed more than 1,800 Americans across five generations, asking about work, money and relationships. And among different generations, Gen Xers were the most likely to report feeling financially insecure.

Experian Consumer data shows that the average total debt of Gen The generation also had more than $9,000 in average credit card debt, based on data from the third quarter of 2023, which was not only an increase over the previous year’s average credit card debt, but much higher. the national average of US$6,501 or the average for other generations.

“Gen X is the generation most likely to have the richest credit mix,” the Experian post stated. “This may seem flexible, but in practical terms it means these consumers will likely have multiple monthly payments to meet — think student loans, mortgages, credit cards and car payments.”

The story continues

That’s not to say other generations aren’t facing similar challenges. According to a new TransUnion study based on credit bureau data and a December 2023 survey of just over 1,200 Gen Z and millennial consumers, the younger generation is disproportionately struggling to balance a range of credit amid high inflation.

Specifically, members of Gen Z are seeing higher levels of delinquency on products like credit cards and auto loans compared to millennials 10 years earlier, with 75% of Gen Z respondents saying the pandemic negatively influenced your finances.

“Gen Z consumers have seen their finances significantly impacted by the pandemic and its aftermath, even more so than the challenges faced by Millennials as a result of the global financial crisis,” Michele Raneri, vice president and head of U.S. research and consulting at TransUnion said in a statement.

One AARP Financial Security Trends Survey January showed that around a third of people aged 50 or over — that is, the results include part of Generation worried about having enough money to feel financially secure in his retirement. Additionally, about a quarter of them said they were very worried.

In addition to these concerns, how much older Americans have in retirement savings It varies – from 20% of older survey respondents, excluding those who don’t know about their savings, who aren’t retired and who say nothing, to 7% who say at least $1 million.

It all comes like “peak boomers“are poised to unleash a retirement tsunami. These are the last boomers to retire, and they are facing similar challenges — more than half will rely primarily on Social Security for income, according to a report from the Alliance for Lifetime Income’s Lifetime Income Institute. Retirement This could set the stage for the new crop of Gen X retirees to tap into already precarious retirement savings.

Are you a Gen Xer worried about paying for retirement? Contact these reporters at jkaplan@buisnessinsider.com, mhoff@businessinsider.comIt is asheffey@businessinsider.com.

Read the original article at Business Insider

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