Table of Contents
Executive Summary
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- Top takeaways: what Gen X consumers want from their finances
- Target audience overview
- Impact of COVID-19 on the financial needs of Gen X
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- Figure 1: Short-, medium- and long-term impact of COVID-19 on Generation X adults and their financial needs, November 2020
- Opportunities and challenges
- Gen X will have to learn to adapt
- Gen X adults need to combine sound financial advice with actual habits
- COVID-19’s effect will be felt more strongly on lower-income Gen X families
Target Audience – Key Takeaways
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- 50 million adults with high incomes and growing net worth
- Gen Xers are almost empty nesters
- Gen Xers are eventual technology adopters
Gen X by the Numbers
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- A 50-million-person sandwich
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- Figure 2: US population by generation and age, 2020
- A highly educated generation
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- Figure 3: Educational attainment, by age, 2019
- Declining homeownership rates, but new opportunities
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- Figure 4: Home ownership rates for the US, by age of householder, 1982-2019
- Two thirds are married, yet divorce exists
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- Figure 5: Marital status, by age, 2019
- Gen Xers nearing empty nester phase
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- Figure 6: Family households, by age of own children and age of householder, 2019
- Generation X is a more affluent generation
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- Figure 7: Median total household income in 2018, by age of householder
- Gen X net worth is on the rise
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- Figure 8: Median household net worth in 2016 dollars, 2007, 2010, 2016
- Gen Xers are eventual adopters
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- Figure 9: Social media platforms used at least once per week, by generation, June 2020
Companies and Brands – Key Takeaways
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- Could Robinhood be next for eventual adopting Gen Xers?
- Charles Schwab becomes leader after merger
- New technology increased financial access
Companies and Brands
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- Trading app popularity explodes among Millennials – Gen X next?
- Charles Schwab and TD Ameritrade consolidate
- Rise of robo-advisors and low-fee planning
The Consumer – Key Takeaways
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- Gen Xers are settled in their ways
- Security, family and retirement top Gen X concerns
- Financial priorities are determined by income
- There is a need for alignment of words with actions
- Gen Xers could use more help from financial advisors
- Financial worries increase after COVID-19
- Gen X debt borne of necessity over luxury
Major Life Changes
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- Gen Xers have largely settled into their circumstances
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- Figure 10: Expected life changes in next year, Gen X, July 2020
- Gen X less likely to see new job or expect promotion
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- Figure 11: Expected life changes in the next year, by generation, July 2020
Financial Incentives
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- Security, family and retirement top Gen X concerns
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- Figure 12: Gen X financial incentives, July 2020
- Gen X is more concerned with building a nest egg
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- Figure 13: Retirement as incentive, by generation, July 2020
- Not just looking to the future, making ends meet is another concern
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- Figure 14: Making ends meet as financial incentive, by generation, July 2020
Financial Priorities
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- Saving for retirement and paying bills are top priorities
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- Figure 15: Gen X financial priorities, ranked, July 2020
- Financial priorities determined by income
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- Figure 16: Top financial priorities, by age and income, July 2020
Financial Behaviors
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- Not all Gen Xers’ behavior is consistent with their goals
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- Figure 17: Gen X financial habits, July 2020
- Financial habits of Gen X not improved over younger generations
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- Figure 18: Financial habits, by generation, July 2020
- 401(k) and monthly retirement savings are largely determined by income
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- Figure 19: Financial habits, by age and income, July 2020
Financial Satisfaction
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- Gen Xers could use more help from financial advisors
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- Figure 20: Gen X financial satisfaction, July 2020
- Gen Xers are less satisfied with their finances than Millennials
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- Figure 21: Financial satisfaction, by generation, July 2020
- New access for less affluent to reach financial advisors
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- Figure 22: Consultation of professional financial advisor, by age and income, July 2020
Impact of COVID-19
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- Financial worries increase due to COVID-19 pandemic
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- Figure 23: Impact of COVID-19 on Gen X, July 2020
- COVID-19 has more significant impact on less affluent
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- Figure 24: Impact of COVID-19, by age and income, July 2020
Attitudes and Behaviors toward Debt
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- Debt is a source of stress for a quarter of Gen Xers
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- Figure 25: Gen X attitudes toward debt and saving, July 2020
- Gen X debt borne of necessity over luxury
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- Figure 26: Debt accumulation to keep up with friends, by generation, July 2020
- There is an opportunity to help them refinance with personal loans
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- Figure 27: Attitudes towards debt and refinancing, by age and income, July 2020
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Abbreviations and terms
- Abbreviations
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