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Gen X Faces a Retirement Crisis: Burdened by Costs and a Lack of Traditional Safety Nets
By Priyashah, World-Today-News.com – November 21,2023
As the oldest members of Generation X approach their 60s,a sobering reality is setting in: a majority don’t feel financially prepared for retirement. A new report from northwestern Mutual reveals that over half of Gen Xers – those born between 1965 and 1980 - are concerned they haven’t saved enough to secure their future. This isn’t simply a matter of typical pre-retirement anxieties; Gen X faces a unique confluence of financial pressures that are considerably hindering their ability to build a agreeable nest egg.
while anxieties about retirement are common across generations,Gen X’s situation is especially precarious. They are increasingly caught in the middle, navigating the dual responsibilities of supporting aging parents and financially assisting their grown children – a position often referred to as the “sandwich generation.”
The Weight of the Sandwich Generation
The pressures on Gen X are substantial. A recent survey by Lombardo Homes found that 61% of Gen Xers currently live in multi-generational households. This often translates to important financial strain, as they juggle expenses like children’s college tuition alongside rising healthcare costs for their parents.
“As parents live longer, Gen X may encounter unexpected caregiving costs, ranging from medical expenses to long-term care,” explains private wealth advisor john Faircloth. “These unexpected expenses can strain their savings and divert resources away from retirement planning.”
Adding to the burden, Gen Z children are remaining financially dependent on their parents for longer periods. Pew Research Centre data shows that adult children are living with their parents at higher rates now than in previous generations,
