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Is Money Stress Impacting Your Mental Health

More than any other generation, 60% of Gen Xers (ages 43 - 58) have said that money is having a negative impact on their mental health, this is up 46% from last year according to a survey conducted by Bankrate.

Why are they so stressed about finances? According to a recent New York Life article:

  • Over half (53%) of Gen Xers do not have any retirement savings or a retirement strategy.
  • Nearly half (45%) feel less prepared than their peers for retirement.

Many Gen Xers are caught in the middle of financial wellness priorities. Called the sandwich generation, they are juggling household and family obligations — caring for aging parents and supporting their children — combined with juggling work and household budgets while trying to save for retirement. In addition they may be facing life altering events such as divorce, death of a spouse, illness and potential disability.

Underlying their current anxiety is economics. Gen X has lived through three major financial crises over the last 25 years. They were in the workforce for a handful of years when the dot-com bubble burst in the late 1990s. Less than a decade later, they were hit with the Great Recession and, more recently, the coronavirus. The housing collapse a decade ago also impacted them. For many Gen Xers their home is their biggest asset.

 

It is not all gloom and doom, as they are the only generation to recover the wealth they lost during the Great Recession. The median net worth of Gen X households has risen 115% as many have been fortunate enough to hold on to assets and continue working.

 

Why it matters

Gen X is in their peak earning years prior to retirement. The average Gen X household earns significantly more — approximately $117,577 before taxes — than other generations. However, they tend to spend the most money on consumer goods and services and hold significantly more debt than other generations.

 

The Bankrate survey found that Gen X parents, in particular, say they have sacrificed retirement savings (50%), emergency savings (58%), paying down their debt (55%) or reaching some other financial milestone (60%) to help their adult children financially.

 

We are also living longer which means Gen X needs to plan for a retirement that could last 20-, 30- or 35-years. In overcoming challenges and setbacks as well as confronting a retirement that could last decades, Gen X should consider working with a financial professional to reduce anxiety by creating a financial wellness strategy that is personalized to their individual needs.

Content for this article was sourced from New York Life, Survey says: Gen Xers most worried about finances, retirement preparedness.

 

This material was produced for Damefender Financial Partners use. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.