Gen X is facing a major money and confidence crisis as it enters the middle years of life. Generation X, generally people in their 40s and 50s, has become the most economically pessimistic generation in the US, with rising costs and growing financial pressure affecting how it views the economy. The generation once known for its “Slacker” image is now dealing with a serious midlife financial squeeze.
A new study from the Conference Board found that Gen X has reported the weakest consumer confidence levels among the generations measured. Axios reported on the findings, showing that Gen X is much more worried about the economy than younger Americans.
Gen X midlife crisis
Economists say part of the problem may not be financial alone. Research has found that happiness often follows a U-shaped pattern during a person’s life. Happiness can decline after youth and reach its lowest point around the mid-to-late 40s before improving later in life.
The combination of higher expenses, family responsibilities, retirement worries and the natural emotional dip linked to middle age could be making Gen X especially pessimistic about the US economy.
One economist cited by Axios said this typical midlife malaise could be a major reason behind Gen X’s low confidence. The Conference Board data showed that Gen X’s six-month average Consumer Confidence Index dropped to 78. This is the generation’s lowest level in at least four and a half years.
Gen X consumer confidence
Boomers recorded a six-month average of 83 points, which was their lowest level since October 2021. Even so, Gen X’s reading of 78 points was lower. Conference Board chief economist Dana Peterson described Gen X as the “sandwich generation” in comments to Axios.
Many Gen X adults are caring for aging Baby Boomer parents while also supporting their Gen Z children. Instead of focusing only on their own retirement, many Gen X Americans have to worry about the financial needs of their parents and children at the same time. This can make it harder for them to save enough money for their own future.
Gen X retirement worries
Generation X is moving into its highest-earning phase, yet many remain unconvinced that they are financially prepared for retirement. Despite enjoying stronger incomes than before, concerns about long-term financial security persist.
According to a NielsenIQ report, only 35% of Gen X respondents said they were financially equipped to support their aging parents, underscoring the growing burden of caring for older family members. The survey also found that just 55% believed they would be able to provide financial support to their children over the next few years, leaving a significant portion uncertain about meeting their children’s future financial needs.
Gen X has money flowing through its households and is expected to remain a major consumer group, yet many members do not feel financially secure. Their worries about parents, children, retirement and rising expenses are weighing on their view of the economy.
