Resilient forgotten generation is coping, not thriving
A third of the so-called “forgotten generation” fear they will retire with mortgage debt, despite being one of the key groups entering the housing market at a relatively early age.
Nestled between Baby Boomers and Millennials, Generation X earned the moniker as a smaller and less vocal demographic than the other two.
Now these 46 to 60-year-olds are the subject of a new Australian study exploring how they feel about their financial future.
“This generation is resilient and talented, but tired, under-recognised, and struggling rather than thriving,” said Toby Ellis, chief executive of community rewards platform Citro, which commissioned the research.
The study of just over 1,000 people found that although many government leaders are Gen Xers, 51 percent feel they are mostly or completely invisible in national debates.
30 percent expect to retire with a mortgage, 98 percent say they are tired most of the time, and up to 70 percent are caring for children and/or parents, leaving them struggling financially or emotionally.
“Generation Xers are holding so many things together in Australia right now – families, businesses and communities – but they do so quietly and often at personal cost,” Mr Ellis said.
According to the latest federal budget65 to 80 percent of Gen Xers own or purchase their own home; this rate is less than 50 percent for those under 40 years of age.
But Gen Xers are bearing the brunt of the rise in inflation in the years since the COVID pandemic, just as they enter some of the most expensive or financially vulnerable years of their lives.
“The rise in inflation following the pandemic has significantly eroded purchasing power and it will take many years for this lost ground to fully recover,” said Shane Oliver, chief economist at AMP, which backs Citro.
“These are the years when expenses are highest; mortgages are at their highest, children are still financially dependent, and care responsibilities simultaneously extend to aging parents and family members.
“The result was not temporary regulation but sustained financial pressure.”
Pilot and Gen Xer John Pavlov agrees.
“Our salaries and wages may be slightly higher, but our spending power has unquestionably gone backwards,” he told AAP.
“We’re doing the heavy lifting right now, arguably… but I think every generation has its own challenges.”
Given high house prices, Mr Oliver said people took out mortgages later in life and borrowings tended to be larger.
“We’re now seeing more Australians moving their mortgages towards retirement,” he told AAP.
At the same time, many Gen
The statistics bureau says that according to demographers, Generation Z was born between 1996 and 2011, Generation Y was born between 1981 and 1995, Generation X was born between 1966 and 1980, and Baby Boomers were born between 1946 and 1965.
According to the 2021 census, Generation Z makes up 18.2 percent of the population, Generation Y and Baby Boomer generation make up 21.5 percent, and Generation X makes up 19.3 percent.
*Citro research was conducted by Dynata research group.
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