Gen Xers Poorer Than Their Parents
The following statistics from a report published by Tami Luhby for CNN Money stand as a great indicator for what the market might be like for the Gen Xers of today once they reach the age of retirement.
- Gen Xers have $29,100 in wealth, compared to the $65,200 that their parents had socked away at the same age.
- Only 36% of Gen Xers have exceeded their parents’ net worth.
- 3/4 of Gen Xers are taking home bigger paychecks than their parents did.
- Gen Xers have nearly 6x the debt level of their parents.
- Degree-holding Gen Xers make $25,000 a year more than their non-educated peers.
- Gen Xers are also less prepared for retirement, according to an earlier Pew study. They lost 45% of their savings between 2007 and 2010.
Their college educations leading to student loans and a mountain of debt to pay back put them two decades behind the eight ball of the years that their parents spent saving money. It can be presumed that during these earlier years of life when they could have been saving money, expenses were lower. No spouse, no kids, no mortgage. But as they reached the point 20 years later where they finally had no more debt, their expenses were much higher. Their own children were reaching the college age, one of the biggest recessions in history took a toll on the little they were able to save in that time, and many jobs were either scarce or lost.
The market place for retirees, such as cruise lines and vacation homes may unfortunately be a thing of the past for the upcoming retiree aged Gen Xers. Marketers should start to consider some new activities that could be introduced into the mix for Gen Xers to take advantage of nearing their age of retirement that are more cost effective and less damaging to their small savings.