64% of Gen X Say Inflation Has Hit Harder Than Any Recent Crisis — Here's Why
Gen X has lived through decades of economic turmoil, but a new survey from career website Zety suggested recent inflation may be the financial challenge that hit hardest. Nearly two-thirds (64%) of Gen X workers said rising costs have hurt their finances — that's more than those who said they were hurt by COVID-19, the Great Recession or the dot-com bust.
Here's why Gen X claimed inflation has impacted them so significantly, and whether their perception aligns with reality.
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Gen X on Inflation Hurting Their Finances Most
When Gen X respondents were asked which major economic events have negatively impacted their personal finances, recent inflation topped the list:
64% blamed rising costs and recent inflation (2022 to present)
46% blamed the COVID-19 pandemic
23% blamed the 2008 Great Recession
10% blamed the dot-com bubble of the early 2000s
One reason inflation may feel more damaging than a recession is that it affects nearly every aspect of daily life at the same time.
"Higher prices can affect nearly every household expense at once, such as groceries, housing, insurance and utilities," said Dr. Jasmine Escalera, career expert at Zety.
Inflation may be hitting Gen X particularly hard because many are balancing peak earning years with peak financial responsibilities.
"Gen X is also at a stage of life where many people are carrying significant financial responsibilities," Escalera continued. "They may be supporting children, helping aging parents or providing financial support to other family members, all while trying to prepare for their own retirement."
That pressure is reflected in a separate Zety report, which found 52% of Gen X workers said financial responsibilities for others are affecting their ability to save for retirement, while 16% have delayed retirement.
"That can make inflation especially difficult at this point in their lives," Escalera said. "Higher costs affect what they can afford today, while also reducing how much they’re able to set aside for tomorrow."
Why Rising Costs Are Squeezing Gen X Budgets
According to the survey, 58% of Gen X workers said their income either just covers their expenses or doesn't cover them at all. Unlike a recession, which may result in temporary layoffs or market declines, inflation steadily reduces purchasing power over time. Even workers who remain employed can feel the strain when everyday expenses rise faster than their earnings.
"When your paycheck stays the same, but the cost of your life keeps going up, there’s less room for that income to stretch," Escalera said. "That becomes even more significant when you consider findings from Zety’s Pay on Pause report, where 41% of employees said it had been more than two years since they received a raise at their current job."
For many Gen X workers, those pressures are colliding with other critical financial goals.
"These are years when many workers are trying to save more aggressively for retirement, pay down debt and build greater financial security," Escalera said. "But when wages aren’t keeping pace with rising costs, more of each paycheck has to go toward everyday expenses, leaving less to put toward those goals."
Inflation Is Changing How Gen X Plans for Retirement
The impact extends beyond monthly budgets and cost-of-living concerns. Inflation also appears to be reshaping retirement expectations. The survey found 19% of Gen X workers don't expect to ever fully retire, while 38% plan to delay retirement until age 68 or later.
Despite those concerns, many Gen Xers are taking steps to strengthen their retirement outlooks. The survey found that:
44% are reducing spending
35% are paying down debt
34% are increasing savings or retirement contributions
25% are earning additional income through a second job or side hustle
18% are delaying retirement
16% are adjusting their investment strategy
"This can also be the time for employees to really look at their careers and ask how they can make these next working years count financially," Escalera said. "Maybe there’s an opportunity to go after a promotion or negotiate a much-needed raise."
Employees can also focus on building skills that increase their earning potential and create more financial flexibility.
"It may even be worth looking at their longer-term career path and whether staying where they are is going to get them where they need to be financially," Escalera said. "Your career and your retirement plan don’t have to be two separate conversations."
She also noted that retirement doesn't have to be an all-or-nothing decision.
"The goal doesn’t necessarily have to be working full time until you can stop working altogether," Escalera said. "It could mean reaching a point where you can step back, consult, work part time or take on more flexible work while still bringing in income."
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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