5 minEconomy
Gen X feels more economically anxious than younger generations and fears running out of money
Gen X consumer confidence has stayed near five-year lows while Gen Z and millennials have held steadier, with many Gen Xers saying they fear running out of money more than death.
Generation X is now more pessimistic about the economy than either younger millennials and Gen Z or the baby boomers ahead of them. Gen X has averaged about 60 points on the Conference Board's Consumer Confidence Index over six months, a reading that has hovered near its lowest level in five years. Baby boomers have fallen even further, with scores below 50, also their weakest in years. Both groups have been sliding steadily since early 2025, while Gen Z and millennials have held roughly steady at around 100 and 90 points, respectively.
The anxiety among Gen X appears to be structural rather than a passing mood. Members of the generation are often in their 50s, the stage psychologists describe as the bottom of the U-shaped happiness curve, while managing the care of aging parents and the expenses of dependent children. Seventy percent of Gen Xers say they fear running out of money more than they fear death, a higher share than millennials at 66 percent or boomers at 61 percent. Nearly half, or 44 percent, say they are not confident they can save enough for retirement, compared with 35 percent of millennials and 40 percent of boomers.
The savings gap is large. A 2024 Northwestern Mutual study found that Gen X believes it needs $1.56 million to retire comfortably but has saved an average of just $108,600, a shortfall of about $1.45 million. In a CFP Board survey, 95 percent of Gen Xers said their financial regrets had already cost them real money, with 59 percent reporting stress and 40 percent reporting anxiety tied to those regrets.
Baby boomers, by contrast, hold considerable wealth on paper. They make up 20 percent of the U.S. population and hold 31 percent of the country's wealth, or about $85 trillion in assets. That wealth is unevenly distributed. Pew Research Center found that in 2022 the top 10 percent of boomer households held 71 percent of the generation's wealth. Nearly one-third of Americans 55 or older have no retirement savings, and of those who do, about half have less than $100,000, according to a GoBankingRates survey.
Older Americans also face rising costs. Morgan Ward, a professor of consumer behavior at Emory University's Goizueta Business School, said that boomers and the Silent Generation face higher healthcare costs as they live longer and must cover groceries from retirement funds. Ward said shorter time horizons make people more sensitive to market swings because they cannot wait for a recovery. An AARP report published in June found that home care inflation rose 7.9 percent over the last five years, nearly double overall inflation. Nursing home costs rose 25 percent between 2019 and 2024, while household income for those over 65 grew 22 percent over the same period.
Younger adults are in a different position. More than half of Gen Z learned about investing before entering the workforce, compared with 20 percent of boomers, according to 2024 World Economic Forum survey data. Gen Z and millennials have amassed a record $3.1 trillion in holdings, and many are investing because home ownership remains out of reach, with home prices up 235 percent since January 2000. Chen Zhao, head of economics research at Redfin, said investing can be a way to save toward a home for younger adults who doubt they will ever afford one.
Ward said Gen Z is also finding financial footing through entrepreneurship, reflecting distrust of traditional institutions and conventional education paths. A Bank of America Institute report published earlier this year found that Gen Z business applications grew about 66 percent year over year as of June, roughly equal to the combined growth of millennials, Gen X and boomers. Ward added that more young people are living at home after college, easing pressure to pay rent and other expenses. "You are not completely reliant anymore on a big company hiring you and then you retire in 35 years with a gold watch," she said.
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