A report by The Economist points out that Generation X, born between 1965 and 1980, is considered the most “unfortunate” generation. They not only missed out on opportunities for substantial asset appreciation, but also face heavy pressure from being sandwiched between responsibilities. According to research by Ipsos in 30 countries, the unhappiness rate among Generation X is as high as 31%, ranking the highest across all age groups.
Compared to Generation Z (born 1997-2012), who complain about social media, millennials (born 1981-1996) lament about being unable to afford housing, and the baby boomers (born 1946-1964) worry about retirement, Generation X is simultaneously bearing the pressure and harsh realities of three generations. This generation also faces midlife crises, health concerns, and experiences the slowest income growth among all generations.
The Economist points out that on average, 5% of Generation X’s household spending is used to care for two generations, which is significantly higher than the 2% spent by baby boomers. In Europe, countries like Italy and Spain, the proportion of young people still living with their parents continues to rise, and most of these young adults’ parents belong to Generation X, further exacerbating their economic burden.
Generation X also faces disadvantages in career development and wealth accumulation. Despite having slightly higher real incomes compared to previous generations, reports from the American Enterprise Institute and the Federal Reserve show that Generation X’s income growth is only 16%, the smallest among all generations. Generation X entered the workforce during the 2008 financial crisis, where the job market was sluggish, salary increases were limited, resulting in stagnant overall income, hindering their development, and facing more challenging circumstances than other generations.
The report mentions that Generation X missed out on two major periods of asset appreciation, namely the stock market surge of the 1980s and the strong market returns in recent years enjoyed by millennials. In contrast, Generation X faced the dot-com bubble and financial crises, with mediocre investment returns. Facing soaring property prices and loan difficulties, many were unable to own property, some even facing foreclosure, reverting back to the rental market.
Although millennials are often referred to as the “rental generation,” data from the Federal Reserve Bank of St. Louis shows that Generation X had a similar homeownership rate as the current millennials when they were in their 30s and 40s, highlighting the difficulties faced by Generation X in property ownership.
The report mentions that Generation X was once a driving force in the creative economy, having enjoyed the golden years of the 1990s. However, with the rise of digitalization and artificial intelligence, many of the skills they excelled in were quickly replaced, leading them to face workplace crises. According to data from the recruitment platform Indeed, Generation X has the lowest workplace satisfaction.
A 2022 survey by the American Association of Retired Persons revealed that about 80% of Generation X feels discriminated against due to age. Struggling in the digital age, they are unprepared to face the rapidly changing workplace and retirement prospects.