Sandwiched Between Responsibilities: Gen X's Financial Struggles Unveiled

While Gen Z often bears the brunt of financial hardship, a new study reveals that their parents, the Gen X cohort, are also grappling with significant economic challenges. Despite their seniority in the workforce, many Gen Xers are finding themselves forced to take on additional jobs to make ends meet, a testament to the mounting pressures they face.

Uncovering the Financial Strain on Gen X

The Paycheck Predicament

According to a survey conducted by Deputy, a staggering 81% of Gen Xers, aged 43 to 59, report that their current job does not provide enough financial security. This figure stands in contrast to the 75% of Gen Zers, 73% of millennials, and 71% of baby boomers who express similar concerns. The Deputy CEO, Silvija Martincevic, attributes this to the intense financial pressures faced by Gen X, including rising costs, the responsibilities of caring for both children and aging relatives, and the burden of managing the highest average debt of any generation in the U.S.

The Polyworking Phenomenon

The survey findings reveal that Gen Xers are the most likely to hold multiple jobs, with a third of the cohort juggling two or more gigs. This is significantly higher than the 20% of Gen Zers, 24% of millennials, and 19% of baby boomers who have taken on additional employment. This trend suggests that Gen Xers are turning to "polyworking" as a means to make ends meet, a stark contrast to their more privileged counterparts within the same generation.

Debt and Financial Sacrifices

The financial strain on Gen Xers is further exacerbated by their high levels of debt. According to LendingTree, Gen Xers have the highest median non-mortgage debt across the 100 largest cities in the U.S., at $33,859 – double the median of $16,562 for Gen Zers. This debt burden, coupled with the responsibilities of raising families and caring for aging parents, has led many Gen Xers to make significant financial sacrifices. In fact, a Bankrate survey found that 69% of Gen Xers have made financial sacrifices to assist their adult children, often dipping into their emergency and retirement savings.

The Anxiety Epidemic

The financial pressures faced by Gen Xers have taken a toll on their mental well-being. According to the Deputy survey, a staggering 78% of Gen Xers worry about their finances daily, a higher percentage than the 74% of Gen Zers, 75% of millennials, and 66% of baby boomers who report similar concerns. This heightened sense of financial insecurity is not a new phenomenon for Gen X, as they were previously identified as the least optimistic about their finances in a 2022 New York Life Wealth Watch survey.

The Sandwich Generation Dilemma

Gen Xers find themselves caught in the middle, shouldering the responsibilities of caring for both their children and aging parents. This "sandwich generation" dilemma has left little room for Gen Xers to focus on their own financial well-being. As Bankrate senior economic analyst Mark Hamrick notes, "For the generation of families and individuals stuck in the middle of caring for (and/or providing for) both younger and older relatives, the impact and potential damage to their own personal finances are magnified."In conclusion, the financial struggles of Gen X are a testament to the complex challenges facing this generation. Caught between the demands of raising families, caring for aging parents, and managing high levels of debt, many Gen Xers are forced to take on additional jobs and make significant financial sacrifices to make ends meet. As the middle-child generation, Gen X's financial woes highlight the need for comprehensive solutions to address the unique challenges faced by this often-overlooked demographic.