It’s no secret that it’s challenging for many Americans to make ends meet today, but some people struggle more than others.
According to the 2024 Financial Literacy Survey by GOBankingRates, 13% of Americans do not bring in sufficient money to cover their costs, and 46% hardly bring in enough to cover their expenses.
The years struggling the most are Gen X, between 44 and 59 years of age, and baby boomers, who are between 60 and 78. Let’s examine the results of the survey more closely and contemplate the difficulties that these age groups face.
Boomers and Gen X Report Not Being Able to Pay Their Bills
Yet when they face difficulties, the majority of Gen Xers and boomers can pay their bills. Nevertheless, some report never being able to make ends meet.
Out of younger Gen Xers who are 45-54 years old, 17% claim they don’t make enough money to cover their bills according to our survey. Out of older Gen Xers who are 55 to 59, 18% don’t make enough money to cover their bills.
Out of younger boomers who are 60 to 64, 18% don’t make enough money to cover their bills. However, only 7% of older boomers (65 and over) are unable to cover their bills.
Another claim to be able to pay their bills, but only surprisingly.
There are quite a dozen Gen Xers and boomers who report being able to pay their bills who are just stumbling around.
Out of younger boomers (60-64), close to half — 48% — barely make enough to cover their expenses. And 38% of boomers over 65 claim to hardly get by when attempting to pay their bills.
Regarding older Gen Xers, ages 55-59, 48% are struggling to pay their bills, and 50% of younger Gen Xers (45-54) are in the same boat.
Why Gen X Is Struggling More Financially
Aaron Cirksena, founder and CEO of MDRN Capital, said that Gen Xers face unique economic problems compared to other age groups. He explained that Gen X is regarded as the “sandwich generation,” which means they must balance raising their adult children with aging relatives, including those who reside in retirement communities.
“They also may have learned financial habits from baby boomers, who we are learning may not have been the most financially responsible,” Cirksena said. Boomers “fell prey to many financial recessions” and may not have prioritized their budget, leading Gen Xers to figure out their own money.
Why Boomers Are Struggling More Financially
According to Cirksena, boomers don’t have the best economic record because of the financial and economic turbulence that occurred during their working years.
Some boomers have little retirement savings and minimal financial security due to the downturns of the market, instabilities of markets, and fluctuating employment during their maximum working years, he said. Not to mention the rising healthcare costs they may be facing right now.
Good Tips for Gen X
According to Cirksena, Gen Xers may take his advice into account for most age groups.
Create a budget, pay off high-interest debt, begin maximizing your retirement funds, cut out unnecessary expenses, diversify investments, and consider your long-term financial goals and how you need to prepare for them, he said.
Erika Kullberg, lawyer, personal finance professional, and chairman of Erika.com, said Gen Xers may keep costs under control, track every quarter and cut down wherever possible. She also suggested starting out by saving.
She advised people to “Put aside cash for emergencies (roughly six months of living expenses), and maximize retirement vehicles after that,” she said.
Kullberg also gave the advice to consult with a financial planner and consider a comprehensive financial plan to aid in understanding long-term financial goals. Additionally, she suggested seeking out new income sources. See where you can find additional income on the side through a side business or freelance work.
Helpful Advice for Boomers
Since they are either retired or on the verge of retirement, the advice for boomers is a little different.
“Reassess your retirement savings,” said Cirksena. “Figure out how to live within your means, whether that means downsizing, taking a more conservative approach to investing, etc. Go through your assets, cut out any unnecessary costs, and maximize your Social Security benefits. Know when you should retire (try to reach your maximum retirement age so you can receive all benefits).”
In addition, Kullberg suggested that boomers consider scaling back if possible. Can you reduce the size of your home or alter your lifestyle to allow you to spend less and save more to build up a pension? she queried.