Gen X Faces Unmanageable Debt Amid Retirement Concerns

New York, NY – New data suggests Generation X is struggling with unmanageable debt, posing a significant challenge as they approach retirement age. According to Experian, 27% of Gen X respondents reported having unsecured debt they cannot pay off, a statistic notably higher than those from Gen Z or baby boomers.

Generation X, born between 1965 and 1980, often finds themselves in a financial predicament while attempting to support both their aging parents and their college-bound children. This demographic, often referred to as the sandwich generation, is experiencing financial strain from various fronts.

“It’s no surprise we see rising rates of unmanageable unsecured debt among millennials and Gen X,” said Alex Beene, a financial literacy instructor from the University of Tennessee at Martin. “As these groups gain more earning power, they face escalating living costs that lead them to rely heavily on debt.”

Experian’s data shows that, while 27% of Gen Xers struggle with unmanageable debt, only 18% of Gen Zers and 15% of baby boomers share that concern. Millennials lead the statistics at 28%, indicating a troubling trend across generations.

Across the country, Americans have accrued a staggering $17.57 trillion in debt, which affects economic stability. Financial experts express concern as interest rates and inflation continue to rise. “The pendulum is starting to move toward more people having issues repaying their debt,” said Rod Griffin, senior director of public education at Experian.

The financial strain is compounded by the transition from pension plans to 401(k)s. Many Gen Xers lack adequate financial education on managing these accounts, leading to uncertainty in retirement planning.

“The average retirement plan holder in Gen X has only about $40,000 saved, indicating a potential shortfall,” the National Institute on Retirement Security reported. “This could become increasingly problematic as living costs rise.”

Gen X members are also juggling significant debts, including student loans and credit card balances. A Money report noted that this generation currently carries the highest average debt compared to millennials, Gen Z, and boomers.

“They are caught in a financial storm, supporting children while also caring for aging parents,” finance expert Michael Ryan told Newsweek. “It’s a struggle for many to find balance with rising costs and stagnant wages.”

As they navigate debt and prepare for retirement, experts advise Gen X to focus on financial literacy. “Increasing your understanding of budgeting and saving can empower individuals to make better decisions,” Ryan added.

With the pressure on Gen X compounded by external economic factors, many are left questioning the feasibility of a comfortable retirement. “The reality is, saving plans might need to adapt to survive the unpredictability that the future holds,” said Drew Powers of Powers Financial Group.