Insight of the Day: For 23% of Gen X Consumers, Paying Down Debt Is a Top Financial Goal

Gen X Financial Confidence:

• Gen X, born from the mid-1960s through the early 1980s, demonstrates confidence in their fundamental money skills. Approximately 80% of Gen Xers feel they have an intermediate or advanced understanding of personal finance, including saving, debt management, and insurance

• Despite this confidence, there’s a hint of worry and suspicion about financial industry changes, such as the rise of cryptocurrency and the future of Social Security.

1. Living Paycheck to Paycheck:

• Gen X faces financial challenges similar to other age groups. Ongoing inflationary pressures impact more than half of U.S. consumers, leading to struggles in keeping pace with monthly expenses.

• Interestingly, 41% of consumers earning over $100,000 annually also live from one paycheck to the next, emphasizing that financial stress affects various income levels

1. Retirement Goals:

• Gen Xers prioritize saving for retirement. While immediate financial stress exists, they continue to focus on long-term objectives.

• Among older consumers, 23% of baby boomers and seniors consider retirement savings their top goal. Gen X follows closely, with 30% emphasizing retirement planning.

• In contrast, only 7.4% of Gen Z consumers prioritize retirement savings, likely due to their shorter time horizon for financial planning

1. Financial Wellness Check:

• Gen X should consider conducting a financial wellness check. This involves assessing retirement savings, current spending, and the feasibility of working longer if needed.

• Setting clear, motivating goals is crucial. Whether it’s paying down debt, building emergency funds, or saving for retirement, having a roadmap helps navigate financial challenges

Source: https://www.pymnts.com/consumer-finance/2024/for-23percent-of-gen-x-consumers-paying-down-debt-is-a-top-financial-goal/