Generation X has the most pessimistic view of the economy among all age groups, according to a study by Allianz Life Insurance Company. Those born between 1965 and 1980, now aged 46 to 61, are particularly concerned about their retirement savings and rising living costs.
The quarterly study found that only 25% of Gen X believe it is a good time to invest in the stock market, compared to 32% of baby boomers, 40% of millennials, and 39% of Generation Z. Additionally, a higher proportion of Gen X expect inflation to worsen over the next year, making the retirement lifestyle they desire unaffordable.
While inflation in the US stood at 2.4% in February, above the Federal Reserve's 2% target, economic anxiety is widespread. A separate Economist/YouGov poll showed that 72% of Americans across all ages describe the economy as fair or poor.
The study also revealed that 72% of Gen X feel they need to save more for retirement but are hesitant to invest due to market nervousness. Similarly, 71% of millennials and 66% of Gen Z share this fear, compared to only 42% of boomers. Kelly LaVigne, vice president of consumer insights at Allianz Life, noted that Gen X face heightened risk from market volatility as they approach retirement and suggested strategies such as defined outcome ETFs or buffered annuities.
