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While marketers often focus on Baby Boomers’ wealth or Millennials’ disruptive financial habits, Generation X (the generation of people born between 1965 and 1980) quietly occupies a uniquely challenging financial position. Our latest pan-generational research has found that this generation is facing financial pressures from multiple directions, creating a “squeeze” effect that impacts their financial decision-making, planning, and wellbeing.
The sandwich generation gets squeezed
Generation X may sound like the coolest generational name, but their financial reality is far less enviable. Our research reveals a generation caught in the middle—not just chronologically, but financially:
- 83% of Gen X feel responsible for financially supporting their children
- 63% of Gen X feel responsible for financially supporting their parents
- 53% of Gen X report finances as a source of worry
This financial pressure is squeezing Gen X hard. Despite being in their peak earning years, many find themselves unable to build the financial security they need for their own futures.
Supporting generations on both sides
One Gen X participant in our study summed up the reason for this feeling of responsibility: “It is my turn to take care of [my parents] as they cared for me before.” This sentiment of familial obligation runs deep.
Meanwhile, the struggle is equally real on the other side of the generational divide. Another participant noted: “My grown children are constantly asking for money. They are homeless and jobless.“
This two-directional financial pressure creates a significant challenge:
- 29% of Gen X report being unable to plan their future finances
- 77% of Zoomers expect their parents to continue supporting them financially
- 26% of Gen X are relying on inheritance for their own future financial stability
Financial security at risk
The dependence on inheritance creates a precarious situation for many Gen Xers. If their parents live longer than expected (a growing reality with increasing lifespans) or require expensive long-term care, those anticipated inheritances may diminish or disappear entirely. There’s also the small matter of personal guilt…
Our research shows that:
- 41% of Gen X don’t have enough savings to cover three months of expenses
- 41% of Gen X have little to no savings for emergencies
- 74% of Gen X report that the cost-of-living crisis has impacted their spending habits
A generation not asking for help
Despite these financial pressures, our data reveals concerning trends about Gen X’s approach to financial guidance:
- Only 37% of Gen X feel their financial providers understand them and their needs very well
- Compared to 92% of Gen Z, just 74% of Gen X express interest in increasing their financial literacy
- 26% of Gen X don’t want additional financial information, often because they believe they “have enough understanding”
This confidence may be misplaced. When tested on specific financial knowledge, Gen X shows significant gaps:
- Only about half feel very knowledgeable about savings and budgeting
- 27% struggle to understand the language used in financial services
- Less than 30% feel very knowledgeable about investing
- Only 26% feel very knowledgeable about pensions
What financial institutions can do to help Gen X
For financial institutions, this data represents not just a challenge but a significant opportunity. Gen X controls substantial wealth compared to younger generations, yet they receive far less targeted financial guidance.
Here’s what our research suggests financial services companies should consider:
1. Address the unspoken worry
Gen X may not ask for help, but 53% worry about their finances. Financial institutions can proactively address these unspoken concerns through targeted, educational content.
2. Focus on multi-generational planning
With responsibilities to both their parents and children, Gen X needs financial strategies that account for multi-generational impacts. Financial services providers who can help them address these complex needs will stand out.
3. Combine digital and human touchpoints
Our research shows that prefer primarily online financial advice, but with important personal touchpoints. This balanced approach matches their comfort with technology while acknowledging their preference for human guidance on complex issues.
4. Emphasise practical education
38% of Gen X place “planning for retirement” among their top financial challenges. Educational content should focus on making retirement planning accessible and actionable, especially for those who may need to support family members.
5. Speak their language
27% of Gen X struggle with financial jargon, creating barriers to engagement. Simplified, straightforward communication will resonate more effectively.
What Gen X really wants
Our data reveals that Gen X values specific offerings from financial institutions:
- Discounts, cashbacks, or rewards (ranked #1)
- Easy-to-use tools or apps (ranked #2)
- Personalised expert advice (ranked #3)
- Goal-setting and tracking tools (ranked #4)
- Transparent, easy-to-understand language (ranked #5)
Financial institutions that deliver on these priorities have an opportunity to build lasting relationships with this generation.
Beyond the individual: The ripple effect
Perhaps most importantly, reaching Gen X effectively creates a multiplier effect. As financial educators to their children, and supporters to their parents, they influence both older and younger generations:
- 22% of Gen Z expect to learn more about finances from their parents in the future
- Gen X often serves as financial coordinators for their aging parents
By equipping Gen X with better financial knowledge and tools, financial institutions can indirectly influence the financial behaviours of Boomers, Millennials, and Gen Z.
The generation that needs your attention
Gen X may not be the loudest generation demanding financial guidance, but they may be the one most in need of it. Caught between supporting their parents and children while trying to secure their own futures, they face financial complexity at a level unique among generations.
Financial services providers who recognise this squeeze—and offer practical solutions to relieve it—stand to gain not just the business of Gen X, but potentially that of the generations they influence.
For a generation accustomed to feeling overlooked in marketing and product development, a financial institution that speaks directly to their unique challenges will stand out in a crowded marketplace.
STRAT7 delivers comprehensive generational research and market intelligence to help financial institutions develop products, services, and communication strategies that resonate with evolving consumer needs. Contact us to learn how our insights can transform your financial institution’s approach to serving Generation X and beyond.
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