Generation X (Gen X)

Definition and overview

Generation X generally refers to people born between the mid-1960s and the early 1980s (most commonly cited range: 1965–1980). Positioned between the baby boomers and millennials, Gen X numbers roughly 65 million in the United States. The label “Generation X” gained popular currency from Douglas Coupland’s 1991 book Generation X: Tales for an Accelerated Culture.

Key characteristics

Often called the “latchkey generation” for growing up with more unsupervised time after school.
Sometimes labeled the “lost,” “forgotten,” or “invisible” generation because they’ve been less prominent in media and policy debates compared with boomers and millennials.
Many Gen Xers now occupy middle and senior stages of their careers—some in peak-earning years, others approaching retirement.

Population and context

Population estimates (U.S.): Gen X ≈ 65 million; baby boomers ≈ 69 million; millennials ≈ 72 million (data around 2022).
Gen X came of age during major economic events—dotcom bubble, 2008 financial crisis—that shaped their earnings, savings behavior, and risk tolerance.
Gen X frequently overlaps with the “sandwich generation,” providing financial or caregiving support both to aging parents and to children.

Financial snapshot

Wealth distribution (Q1 2025): Gen X holds about 26% of U.S. wealth; baby boomers hold just over 51%.
Projected intergenerational wealth transfer: roughly $84 trillion moving from baby boomers to younger generations over the next two decades.
Retirement savings (survey highlights):
31% of Gen X households have $250,000 or more saved for retirement; 26% have $50,000–$250,000; 9% have no retirement savings.
Median retirement savings per household (Transamerica survey): baby boomers $289,000; Gen X $82,000; millennials $49,000.
Among those offered a 401(k)-type plan, participation was 85% (boomers), 81% (Gen X), 78% (millennials).
Confidence and plans:
Just 17% of Gen X workers feel “very” confident they can fully retire with a comfortable lifestyle.
80% worry Social Security may not be available when they retire.
About 40% plan to retire at age 70 or later, or expect not to retire.
Debt: Gen X has the highest average debt of any generation; average total debt measured around $100,154 (Q3 2024), including mortgages, student loans, car loans, credit cards, etc.

How market timing affected Gen X

Many Gen X households began investing during periods of high valuations (late‑1990s tech bubble) and later suffered major market downturns (2000s and 2008).
Prolonged low interest rates suppressed returns on savings and pushed many toward more conservative (risk-averse) behaviors after early losses.

Major challenges

Lower relative wealth compared with boomers makes it harder to maintain parents’ consumption patterns and lifestyle expectations.
Rising costs of housing, healthcare, and education increase financial pressure.
Sandwich-generation responsibilities—supporting both children and aging parents—intensify time and financial strain.
High average debt levels limit flexibility in retirement planning.

Reinventing retirement: what’s different for Gen X

Defined-benefit pensions are rare in the private sector; Gen X relies heavily on defined-contribution plans (401(k)s, IRAs).
Many Gen Xers do not expect Social Security to be a primary retirement source and plan to rely more on personal savings and wealth transfers.

Practical financial steps for Gen X

Estate planning
Create or update a will, durable power of attorney, medical directives, and consider a living trust to avoid probate and ensure dependent care plans.
Get a comprehensive financial plan
Work with a financial planner to model cash flow, retirement goals, tax implications, and risk tolerance to identify gaps and actionable steps.
Manage and reduce debt
Prioritize high-interest debt, consider legitimate debt-management options, and avoid solutions that add cost or risk.
College planning (if applicable)
Use 529 plans or Coverdell accounts for tax-advantaged college savings; avoid sacrificing retirement savings when possible.
Clarify parents’ finances
Discuss parents’ health, legal documents, and long-term care plans; consider an elder-law attorney for complex situations and designate a family point person.
Set expectations for returning adult children
When adult children return home, require contributions to household costs to ease financial burden and teach fiscal responsibility.

Common questions

Why is Gen X called the “lost” generation?
Labels stem from cultural shifts during their youth (higher divorce rates, more single-parent households) and from being less spotlighted between larger generations.
What does the “X” mean?
“X” implies an unknown variable or a refusal to be narrowly defined.
Is Gen X older than Gen Z?
Yes—Gen X predates millennials and Gen Z by decades.

Bottom line

Generation X occupies a middle ground—culturally and economically—between baby boomers and millennials. Many face unique financial pressures from market timing, debt burdens, and caregiving responsibilities. While retirement challenges are real, focused planning—estate documents, comprehensive financial advice, debt management, and family communication—can materially improve Gen X’s prospects for a secure retirement.