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"If you want something done right, do it yourself" – (Unofficial motto of Gen X)

Gen X is the somewhat enigmatic generation group wedged between Baby Boomers and Millennials. Born from 1965 – 1980, they’re currently between 45 and 60 years old. 

What’s in a name?

The term ‘Generation X’ was first used in a book of the same name, published in 1965 by British journalists Jane Deverson and Charles Hamblett. Its interviews with anti-establishment teenagers who spoke about their “hates, hopes and fears” made a real splash at the time. The term was revived in 1991 to refer to the group born after Baby Boomers.  

Culture clash

As mentioned in our previous articles on Gen Z and Millennials, it’s dangerous to generalise about an entire generation. That said, lots of Gen Xers were shaped by the following trends:

Music videos, grunge, alternative rock and hip-hop 
Low birth rates and the tendency to have children later in life
An increase in divorce rates
Realising that it’s OK to self-actualise/fulfil one’s potential 
Women entering the workforce en masse 
The emergence of ‘latchkey kids’
Needing to care for both growing children and ageing parents 
The Aids epidemic and the end of apartheid

Financial experiences

If you’re a Gen Xer, your financial experience has included the dot-com bubble burst, the 2008 stock market crash and the 2007 – 2013 global recession. On average you’ve been working and investing during a period of lower returns than that experienced by Baby Boomers.  

You may not be able to rely on traditional pension plans to assure you of a comfortable retirement. In fact, a study by JP Morgan Asset Management found that Gen X is the first generation to be worse-prepared for retirement than their parents. 

You’re more likely to use ETFs (exchange-traded funds) than other generations and are prone to invest in balanced investments. Both reflections of a tendency to avoid risk. 
As a Gen Xer, you’ve had to figure things out yourself and not take anything for granted – two useful life skills.

3 top investment tips for Gen X 

It may have been a rough ride, but you’ve still got time to ensure your retirement is happy and prosperous…

Review risk with your financial advisor

Too little risk could stunt the growth of your investments and put you in danger of running out of capital during retirement. But too much risk could expose you to potential financial loss. Your advisor can assist in getting the right balance of high and low-risk investments.  

Get out of the debt trap

It’s important to get rid of any credit card debt and high-interest-rate personal loans. You may also want to pay off your mortgage, even if this means downsizing your home. That said, don’t fixate on eliminating debt to a point where it affects your ability to save for retirement. It is possible to tackle debt while remaining on track with other financial goals.

Plan for the unexpected

If you’re a Gen Xer, there’s the very real possibility that you need to expand your emergency fund. Older children cost more than younger ones and you may also have to assist your parents financially. Be prepared for events such as weddings, additional family cars and, sadly, even your parents’ funerals.

The way forward

As a Gen Xer you’re used to making your own way, and the second half of your life should be no different. Age is just a number and you can still adjust to a changing world and acquire new skills. You may need to switch careers to extend your working life and you’ll certainly need to focus on keeping up with technology. And remember: all the retirement planning in the world is worthless if you don’t keep healthy and remain active. 

Speak to us if you have any questions about your financial plan.