What Is Generation X (Gen X)?
Let me explain Generation X, or Gen X, directly to you: it's the group born after the baby boomers and before the millennials, with birth years typically ranging from 1965 to 1980, though sources like Strauss and Howe or Gallup might adjust those to 1961-1981 or 1965-1979. No matter the exact dates, we all agree Gen X sits right between the boomers and millennials.
Key Takeaways on Gen X
Here's what you need to know about Gen X: this generation includes people born from the mid-1960s to early 1980s, totaling around 65 million. Many are in their peak earning years, but the oldest are nearing retirement, and overall, they're set to be the first generation less prepared for retirement than their parents.
Understanding Generation X
The term Generation X comes from Douglas Coupland's 1991 novel, and while it's more of a marketing tool than strict sociology, it captures how people born in similar eras share views, values, and habits. You should know the generational lineup: Greatest Generation (1922-1927), Silent Generation (1928-1945), Baby Boomers (1946-1964), Generation X (1965-1980), Millennials (1981-1996), Generation Z (1997-2012), and Generation Alpha (2013-2022). Gen X, with 65 million members, is smaller than boomers (69 million) and millennials (72 million), often called the 'latchkey generation' because many were left home alone after school. Like the Silent Generation, Gen X is an 'in-between' group, hit hard by the dotcom bust, 2008 crisis, and sandwiched politically between boomer and millennial eras. Gen X also overlaps with the sandwich generation, where middle-aged folks support both aging parents and kids due to longer lifespans and later childbearing.
Gen X vs. Baby Boomers and Millennials
When I compare Gen X to boomers and millennials based on the 2023 Transamerica survey, you see clear differences: only 12% of boomers took loans or early withdrawals from retirement accounts, versus 19% of Gen X and 24% of millennials. Boomers have a median $289,000 in retirement savings, while Gen X has $82,000 and millennials $49,000. Participation in 401(k)s is high across the board—85% for boomers, 81% for Gen X, and 78% for millennials—but the gaps highlight Gen X's struggles.
Gen X's Financial Situation
Over the next two decades, expect a massive $84 trillion wealth transfer from boomers to younger generations, including Gen X, who will need it badly. Gen X holds just 26% of the nation's wealth, compared to boomers' 51.4% as of early 2025. Notable Gen X figures include Jeff Bezos, Tiger Woods, and Kurt Cobain. On retirement, 31% of Gen X have at least $250,000 saved, 26% have $50,000-$250,000, but 9% have nothing; boomers do better with 51% over $250,000. Only 17% of Gen X feel very confident about retiring comfortably, 80% worry about Social Security vanishing, and 40% plan to work past 70 or never retire. Market timing hurt Gen X—they started investing during high-valuation periods like the dotcom bubble and pre-2008 crisis, leading to bear market losses and risk aversion in a low-interest era. Add rising costs in education, healthcare, and housing, plus sandwich generation duties, and Gen X struggles to match boomer consumption. Their average debt hit $100,154 in late 2024, driven by mortgages, student loans, and more—the highest of any generation.
Reinventing Retirement for Gen X
Retirement looks different for Gen X than for their parents: pensions are rare, replaced by 401(k)s, and they're not relying on Social Security—only 25% expect it as primary income versus 40% of boomers, with 39% of Gen X doubting it'll exist. You need to adapt to this reality.
Financial Planning for Gen X
To handle potential financial stress, take these steps: first, create an estate plan with a will, living will, powers of attorney, and possibly a trust to protect dependents and assets—don't leave it to probate court. Get a comprehensive financial plan from a professional to analyze your cash flow, investments, and goals; it might reveal tough truths about delayed retirement. Manage debt by seeking help if it's overwhelming. Start college planning with 529 plans or Coverdell accounts, letting kids contribute too. Discuss your parents' health and finances openly; if needed, pay for their estate planning or consult an elder law attorney on care issues—don't overestimate Medicare coverage, and consider long-term care insurance. If adult children return home, make them contribute to expenses to ease the burden and teach responsibility.
Why Is Gen X Called the Lost Generation?
- Gen X is dubbed the 'lost,' 'forgotten,' or 'invisible' generation due to societal shifts like rising divorces, single-parent homes, and loneliness during their upbringing.
- Today, they're seen as lost again, stuck between dominant boomers and millennials.
Is Gen Z or X Older?
Gen X is older than Gen Z by decades, with millennials in between.
What Does the 'X' Stand For?
The 'X' symbolizes an unknown variable, like in math, or the generation's resistance to definition.
The Bottom Line
Generation X, about 65 million strong and born mid-1960s to early 1980s, is the latchkey or lost generation shaped by shifting values, divorces, and economic hurdles like the dotcom bust and Great Recession. Now in prime earning years, many feel unprepared for retirement, so if you're in this group, focus on planning to secure your future.
Other articles for you
Asset impairment in accounting involves recognizing sudden, significant declines in an asset's value to ensure accurate financial reporting.
Jack Welch transformed General Electric into a high-value conglomerate through aggressive management and restructuring during his tenure as CEO from 1981 to 2001.
An overnight index swap is a financial hedging tool where parties exchange fixed and floating interest rates based on an overnight index to manage short-term rate risks.
A horizontal acquisition involves one company acquiring another in the same industry and production stage to expand capacity and market share without changing core operations.
The short interest ratio measures short-selling activity relative to a stock's average daily trading volume to gauge market sentiment and potential cover time.
Statutory reserves are funds that insurance companies must maintain as required by state regulators to ensure they can pay policyholder claims.
Fair value represents the agreed-upon market price of an asset or liability between willing buyers and sellers, used in accounting and investing to reflect current worth.
The time value of money explains why money available now is worth more than the same amount in the future due to its potential earning capacity.
Voluntary life insurance is an optional employer-provided benefit that offers a death payout to beneficiaries, funded by employee premiums.
The 52-week high/low represents a stock's peak and trough prices over a year, serving as vital indicators for trading decisions and potential price movements.