Americans in the demographic cohort known as “Generation X,” signifying those born between approximately 1961 and 1980, are displaying larger signs of anxiety related to their finances than the baby boomer generation. This is according to the 2020 Workplace Benefits Report by Bank of America, and cited by retirement media website NextAvenue.
“[The survey] found that just 23% of GenXers feel a sense of progress saving for retirement; only 22% feel progress about growing their savings to pay for unexpected expenses and a mere 14% feel progress paying for current and future health care expenses,” the article reports. “By contrast, the percentages were twice as high (or more) for boomers and Silent Generation members surveyed.”
The finding as presented by the survey was not surprising, but caught attention for being “sharp, noticeable and remarkable” according to Surya Kolluri, managing director of Bank of America.
Other recent surveys further portray the financial anxiety of Generation X. According to a survey from Allianz Life, 42% of Gen X members feel stressed about their finances when compared to only 23% of boomers. Additionally, the median household retirement savings for Generation X is reported to be $64,000 compared with $144,000 for boomers, according to the Transamerica Center for Retirement Studies. 27% of Gen Xers have saved less than $50,000 compared with 18% of boomers, according to the same source.
As previously detailed by RMD, the oldest members of Generation X will be eligible for Home Equity Conversion Mortgage (HECM) loans beginning in 2023, but some will be eligible for proprietary reverse mortgages as soon as this year, 2021. These facts come with some distinct realities when directly comparing Gen X to their baby boomer parents, particularly when it comes to ways that the reverse mortgage industry can appeal to a new generation when the time is right.
Personalizing the customer journey is something that the industry can do to appeal to members of Generation X according to Jean Noble, Chief Marketing Officer at Reverse Mortgage Funding (RMF). Also important is expanding the available technology options for the industry.
“Gen X is tech-savvy and they are comfortable with technology – we need to continue to expand our digital footprints and develop great educational content that can be used across social media platforms and content publishers,” Noble said in October 2019.
Read the article at NextAvenue.