“Generation X” – welcome to retirement
As you know, on this channel there are lots of videos about retirement, most of them directed to Baby Boomers, so people born between 1945 and 1964.
Most of the baby boomers have retired, therefore all my videos about optimizing retirement income and assets, inclusive of Age Pension benefits if applicable, are for the Baby Boomer generation.
But now, we have a new era and another generation approaching retirement, as the very first Gen X members have just turned 60.
This is the magic age, when thinking is changing and now Gen X have a new task ahead of them – retirement is coming, and you need to be properly prepared and ready for your “after-work life”.
So today we will go a bit deeper to discover how Gen Xers are preparing for the big life change and what would be beneficial to consider while doing it.
So, who are Gen X and what are their key characteristics:
- Born between 1965 and 1980
- Grew up with MTV and cable TV
- They saw the end of the Cold War and the fall of the Berlin Wall as well as the collapse of the Soviet Union in 1991
- They value independence and self-reliance
- Pragmatic and resourceful
- Appreciate work-life balance
- Strong work ethics
- Lifelong learners
- Highly educated
- Value meaningful work
- Many exhibit an entrepreneurial spirit and mindset to seek out opportunities for growth and innovation
Data from Census 2021
Obviously now everyone listed in this graph is 5 years older, therefore Gen X now are between the ages of 45 and 60.
Gen X is the first generation where in most cases they were supported with the full Superannuation Guarantee payments from the start of their employment.
SG was first introduced in 1992 at 3% and has been steadily increasing over the years to finally reach 12% in July this year 2025.
The average super balance by age from the ATO data in 2021-22 financial year:
Unlike Baby boomers, Gen X is also the generation to be approaching retirement with sizable mortgage debts, which is mostly due to high increase of house prices in Australia, ongoing property upgrades, renovations Gen Xers implemented, many relationships breakdowns, as well as equity withdrawals.
It is estimated that one in four of Gen X will more likely retire renting.
Gen X cannot count on inheritance from their parents, with their parents living longer than the generation before them.
But those of Gen X that managed to take advantage of the property market have most likely experienced an incredible increase in value of their properties. And we work with many of those clients ongoingly to plan which properties to keep and which to sell, when is the right time to sell and how to deal with tax and how to minimize CGT and then how to utilize those proceeds to improve the upcoming retirement.
So, if you are Gen X member my sincere recommendation is:
- If you still have a mortgage, you really need advice to know the steps going forward: pay off the mortgage or pay extra to superannuation – get advice, make a booking with us,
- If you are selling your family home and downsizing – what to do with the proceeds and any surplus. Don’t just do the default option of a downsizer contributions, there are better ways, but you need to get the correct advice, so contact our office and make a booking for a meeting with us.
- If your income is above eg. $80,000 – find the best ways to boost your super and save tax – but how much is enough or how much is overdone – if you are unsure, make a booking for a consultation with us
- Over 54% of Gen X are concern about outliving their savings in retirement – don’t be one of them, get advice that will put you on the right path for a better retirement
- Only 14% of Gen X actually believe they have saved enough for their retirement – if this is you, congratulations, but please contact us to reconfirm with our modelling and planning what steps to take to actually ensure that your retirement will be indeed what you have envisaged
- Gen Xers believe they need more than $1Mil to retire comfortably, while they have approximately $600K saved, which would indicate the shortfall of $400K. Now, we need to talk to see how this retirement of yours will work, if you need to return to work or your money can still provide what you wish in retirement, so book a meeting with us
- Nearly 48% of Gen Xers have not done any retirement planning – this is a very scary number for me. If you care about your retirement, don’t be part of that 48%, ask for advice, make inquiries, do the numbers, do the retirement modelling, and if unsure how to put this together, just call us to organise a meeting with us and you will get your answers about what to do going forward
- And what shocked me the most is the fact that only 27% of Gen Xers work with financial advisers, compared with 40% of Baby Boomers or even 31% of Millennials.
And unfortunately, the dismissal of working with a financial planner creates those negatives:
- Gen X hold 35% of their retirement savings in cash mainly due to a fear of stock market losses (64%).
- Over half (53%) of soon to retire Gen Xers are concerned about a high possibility of having to return to work to cover their living expenses in retirement, compared to just 20% of retired Baby Boomers.
- Over half of Gen X worry about their access to Age Pension when they reach the required age.
Therefore, if anything mentioned above sounds like worries that you have, savings and planning have to become your highest priorities. So you do not become part of the lost-retirement generation, which is unfortunately the existing name for this generation.
You still have the time to plan, to save, to speak to us how to set up the plan to create the retirement you would love to have, let’s explore investments that will get you there and let’s set up the plan how to safeguard your investment nest egg for those future years.
If you enjoyed this video, please give this video LIKE and SUBSCRIBE to our channel, and please leave a comment below the video, let us know what the biggest challenges are that you are facing now in preparation for your retirement.
If anything mentioned resonates with you, jump on our webiste AboutRetirement.com.au and make a booking with us for an hour consultation. For some this one-hour chat could be enough to gather information as to steps forward. Others might need the full plan and modelling from us or even ongoing guidance. This is all your choice, but you need to make the first step and organise the consultation, so book a meeting with Shaun or myself.
And while visiting our webiste, look around, there are over 200 articles listed by now, all our videos are available for you as well, as please sign up to our Newsletter, so you are kept informed about any changes that could impact your retirement.
By: Katherine Isbrandt CFP®
Money Strategist & Retirement Planner
Principal of About Retirement
