11 Things Gen X Won't Be Able To Afford In Less Than 10 Years
With rising costs, growing financial burdens, and inflation, many Gen Xers are struggling to maintain their stability.
Inside Creative House | Shutterstock.com Now between the ages of 44 and 59, many Gen Xers today are struggling to envision the next decade of their lives as they either reach the peak of their time in the workforce and with their families or begin thinking about retirement while facing an empty nest. Instead reaping the financial rewards of their decades of experience, many Gen Xers are feeling the pinch of financial insecurity. In fact, projections show that there are many things Gen X won't even be able to afford in less than 10 years.
According to the results of Nationwide’s 10th annual “Advisor Authority Report,” Gen X is currently "the least optimistic generation about next year’s financial outlook, with only 36% expressing confidence." While many people across generations are experiencing financial turmoil, Gen X will be hard pressed to face the coming decade without sacrifice and struggle.
Here are 11 things Gen X won’t be able to afford in less than 10 years
1. A comfortable retirement
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With nearly a quarter of Gen Xers saying they believe they will never retire, according to a Natixis survey, and almost half suggesting they’ll need a miracle in order for them to comfortably stop working, it’s not surprising that other financial investments and day-to-day costs are becoming the focus of this generation.
Not only are they struggling to invest in their retirement accounts, but many are living paycheck-to-paycheck, despite working full-time or multiple jobs as they struggle to build up their savings accounts and emergency funds.
For many, adulthood has been riddled by job insecurity, money stress, and an insecure image of their futures, taking away from the excitement and affordability of a comfortable retirement.
2. Healthcare costs
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According to an article in Fortune, many Gen Xers are grappling with anxiety about their health, especially when looking forward to the next decade.
With an already uncertain future as they near retirement age, many worry that just one major health scare could bankrupt them, given that healthcare costs like surgeries and medication are becoming wildly inaccessible.
Especially considering Gen Xers are often paying for healthcare plans for themselves, their spouses, and their children, the increasingly high costs of paying for even decent coverage can be stressful. And there’s no telling if they’ll even be able to afford that insurance in 10 years.
3. Helping their grandchildren with school
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Especially with the majority of young adults spending more time living with their parents into adulthood, as reported in surveys from the Pew Research Center, many Gen Xers are struggling to manage their spending — investing more into utilities, groceries, and oftentimes rent to ensure there’s enough space for their family.
For those without children, finding ways to cut costs might be easier, especially as they prepare for retirement. But those with adult children may be forced to cut costs and stop paying for things they can’t afford in less than 10 years, including helping pay for their grandchildren’s schooling.
Currently, nearly half of grandparents help financially support their grandkids, according to a survey conducted by the University of Michigan. While 23% often provide support for day-to-day expenses like groceries, another 20% help with educational expenses and larger investments like summer camps or rent.
As inflation continues to affect the average household, this additional financial support might slowly disappear.
4. Charity donations
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Despite their contributions making up almost a quarter of today's charitable donations, many experts argue that Gen Xers will subtly start giving less to charity organizations over the next decade as they battle financial insecurity.
While they may be more open to donating their time and volunteering with charitable organizations than other generations, the feasibility of giving money from their monthly income will likely be far less realistic in less than 10 years.
5. New holiday decorations
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While a Rocket Money study found that Gen Xers spent more than any other generation on holiday decorations in 2023, this seems much less feasible over the next decade as costs continue to rise for these households, which also spend similar amounts of income on home decor, hosting, and holiday meals.
Especially considering many households are already needing to cut their budgets for the holidays and plan to work additional jobs and hours to afford their financial plans, it’s not surprising that buying new holiday decorations is one of the things Gen X won’t be able to afford in less than 10 years.
6. Student loan debt
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According to a study published by the Education Data Initiative, Gen X has the highest average student loan balance compared to other generations with similar educational backgrounds. Although other studies, like one from the National Institute on Retirement Security argue that only 13% of Gen Xers hold their own student loan debt, over 95% of those who do hold it in their own name without a shared spouse.
As a hindrance to their savings and retirement planning, student loan debt is becoming more of a monthly burden for Gen Xers as other costs continue to rise.
In addition to groceries, rising rent costs, utilities, and other necessities, the additional burden of student loans is quickly becoming one of the things Gen X won’t be able to afford in less than 10 years without other sacrifices.
7. Caretaking for their parents
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Labeled the "sandwich generation,” Gen X is often responsible for caring for multiple family members in their lives — from their own children to their elderly parents. More likely to be financial and physical caregivers for both of these groups as they age, many of the alternative options for help like care facilities and private aides have become financially inaccessible for Gen Xers.
According to a study from the Pew Research Center, nearly 55% of Gen Xers in their 40s currently have both an aging parent and an adult child over 18-years-old who they've helped financially over the past year.
Unsurprisingly, it’s these same Gen X individuals who feel unsatisfied and unhappy with their family responsibilities — battling the emotional experience of caretaking along with the overwhelming money stress associated with this care.
8. Financially supporting their adult children
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According to a Redfin survey, over one-third of Gen Z and millennial adult children expect their parents to support them in making large financial investments like purchasing a home.
Of course, Gen X isn’t the only generation struggling with rising costs and growing financial insecurity. Their children are also struggling to get their footing navigating adulthood, leaning on help from their parents to find jobs, move into a new home, and build up a comfortable savings account.
While they might be motivated to help, many Gen Xers won’t have the extra money to spend helping their kids with their large financial investments in the next decade, burdened with their own necessities, bills, and future financial goals.
9. Going on dates
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According to a survey conducted by LendingTree, Gen Xers spend an average of $903 annually on their dating life, whether they’re single or in a committed relationship.
However, as the costs of dining out, entertainment, and casual cocktail bars continue to exponentially increase, planning and intentionally spending on these dates is quickly becoming less feasible.
While men tend to spend more on dating expenditures, married households take on the burden of these costs — often sacrificing this intentional quality time with their partners as necessities build up and spark money anxiety.
10. Higher education
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Especially as more Gen Xers battle job insecurity and a heightened need for specialization in their roles, there’s also been a shift towards older generations going back to school and getting advanced degrees to stay competitive in the current tumultuous job market.
However, as tuition costs — both for in-person four year universities and online programs — continue to rise for higher education, this kind of specialization is becoming one of the things Gen X won’t be able to afford in less than 10 years.
11. Child care or watching grandchildren
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While they might not have young children of their own in the next decade, many Gen Xers are becoming grandparents — and they are finding themselves expected to help support and occasionally babysit for their grandkids to support their adult children.
However, as Gen Xers start to face the dread of their looming retirement goals, many are taking up extra jobs and side hustles to invest in their retirement accounts, taking away any free time they might have had to help with child care costs for their adult kids.
While it’s not directly an issue of financial support, these Gen Xers won't be able to afford to split their time between long hours, multiple jobs, and their babysitting responsibilities for their kids in less than 10 years.
Zayda Slabbekoorn is a staff writer with a bachelor’s degree in social relations & policy and gender studies who focuses on psychology, relationships, self-help, and human interest stories.