Gen X: Sandwiched Between Boomers and Millennials

As a proud member of Generation X, it sometimes feels like we’re the forgotten generation. Sandwiched awkwardly between the Baby Boomers and Millennials, we often wonder what the media really thinks of us. A recent article in the Australian Financial Review caught my eye, aiming to outline the financial situation of Gen X. Did they nail it? Or are we just another victim of broad generalizations?

The article points out that many of us, defined as those born between 1965 and 1980, are not prioritizing our financial and retirement planning. It reports that only about seven percent of Gen X’ers seek financial advice. According to one expert, we’re living in a state of denial about our retirement, mistakenly believing we’re much younger than we are. I reckon every generation has its own way of avoiding the effects of time.

While quite a few of us ventured into university life and globetrotting adventures, there’s also a strong bunch of my peers who jumped into work and started building careers right off the bat. Sure, we often had children later than our parents did, with many of us waiting until our mid to late 20s or even later to start families.

Some Gen X’ers are savvy property owners, but plenty more aren’t. Rising property prices have driven many to pass on home ownership, while others simply opt-out due to a desire for less commitment and more freedom when it comes to vacationing.

One undeniable fact is that we’re likely to live longer than previous generations. Though we’ve got some superannuation to help us in our golden years, it seems the government has shifted the narrative on retirement funding. Unlike our parents, who relied on the aged pension, the tide has turned, and many of us are now absorbing the idea that we’re fully on our own financially.

The reality is that a significant number of Gen X’ers are ill-prepared for retirement. Financial planners are working hard to address this, but it’s clear that innovative solutions are needed moving forward.

Right now, private credit funds seem to be a hot topic. These funds, offering higher annual returns than the typical equities market while avoiding excessive volatility, provide a monthly cash income that could be crucial for our generation. It looks like they might be the ticket for many Gen X’ers facing financial challenges down the line.

At Montgomery, we focus on these opportunities through the Aura Core Income Fund and the Aura Private Credit Income Fund. If the studies about our generation are accurate, it might be time for more of us to take a serious look at private credit as a viable solution for our financial futures.