And you thought millennials and boomers were the ones with big money problems.
Actually, those most likely to need the help of advisors are Generation Xers—those born between 1965 and 1980, according to a new survey.
Indeed, these middle-aged men and women tend to lag younger millennials and older boomers in achieving key financial goals, according to MetLife’s 17th Annual U.S. Employee Benefit Trends Study. “This generation [is] in the danger zone when it comes to preparing for the unexpected and planning for the future,” the study said.
Among the three generations, Gen Xers are the least likely to have a savings cushion amounting to three months' salary, according to the survey report. About 53 percent have sufficient savings, and under half report living paycheck to paychek.
“We know this demographic is having problems,” said Michael Chasnoff, a CFP and founder of TruePointWealth in Cincinnati. “And we also know that a lot of them have problems with student loans.”
Why is this generation of would-be advisory clients having such problems?
The survey found that many Gen Xers are alienated at work and worried that they will never make enough to save and retire in comfort.
Given their financial pressures, the report said, “it's not a surprise the study revealed Gen X as the least happy generation of employees at work—just 68 percent of Gen X workers report being happy at work, compared with 75 percent of millennials and 74 percent of boomers."
Contributing to Gen X unhappiness is that “only 54 percent of Gen X workers feel empowered at work and 62 percent feel respected in the workplace,” the report said.
Generation Xers need advisory service because they “are the most likely generation to say they will never retire and may remain in the workforce for the next 30 or more years. Nearly one in five (18 percent) Gen X employees do not plan to ever retire, compared to 14 percent of millennials and 12 percent of boomers,” the report said.