The Most Suffering Generation... 'Those Who Quietly Paid Off Debt While Going to MZ Omakase'

Although discourse about Generation Z (born 1997?2012) and Millennials (M, born 1981?1996) is mainly discussed in the media, an analysis has emerged that the generation currently suffering the most financially is 'Generation X (born 1965?1980)'.

On the 25th (local time), the U.S. economic media outlet Business Insider (BI) pointed to Generation X, stating, "Amid all the chaos caused by Generation Z shaking up workplace culture, Millennials caught in an unaffordable lifestyle, and the asset-rich Baby Boomer generation (born 1946?1964), there is a 'forgotten middle generation'." BI added, "Generation X may be suffering silently even at this very moment."

BI, together with YouGov, conducted a survey in July targeting 1,800 Americans across five generations. First, the Baby Boomer generation was found to have had the best financial situation in recent years due to increased wealth. The highly discussed Generation Z was affected by massive cost increases, changing meanings of 'wealth,' and the boom and aftermath caused by the pandemic. However, they did not feel as financially unstable as the older generations.

On the other hand, over 50% of Generation X reported that they "do not feel financially secure." The proportion who felt "somewhat or very financially secure" was also the lowest among the groups.

BI explained, "The reason they feel financially insecure is that they are quietly struggling under a mountain of debt without having accumulated much wealth." According to a Federal Reserve (Fed) report, Generation X accounts for about 38% of the debt issued in the United States, amounting to approximately $7.1 trillion (about 9,200 trillion KRW). Generation X makes up 20% of the U.S. population. They are also the group with the highest expenses, including mortgages, child-rearing costs, and elder care.

The 1990s 'Seo Taiji and Boys,' a cultural icon representing Generation X

However, Generation X is not entirely impoverished or in an urgent financial crisis compared to other generations. According to the U.S. Bureau of Labor Statistics' Consumer Expenditure Survey, they earn an average after-tax income of $108,615 (about 140 million KRW). Additionally, about 70% own homes. The renter rate is only 30%, showing a pattern completely opposite to that of the MZ generation.

Unlike other generations, their wealth also rebounded during economic recessions. BI analyzed, "During the mass retirement and job change period triggered by the pandemic, they preferred to maintain the status quo rather than resigning, and this strategy appears to have been successful."