Economic Impact of Gen X
Often dubbed the “forgotten” generation, Gen X’s so-called ‘lackluster’ population of *just* 65 million people has often led to us being under-represented by the media and marketers alike.
Doom-and-gloom headlines sell newspapers (and clicks), so we’re starting to see a LOT of coverage about the poor hapless Gen Xers, who, once forgotten. are now being represented as unprepared or even struggling as we face retirement.
Here’s the reality…
Born between 1965 and 1980 (aged 41 to 56), Gen X is undeniable economic powerhouse. Keep reading to dive into the numbers behind the awesome economic impact of Gen X
The Spending Power of Gen X
Gen X Makes, Spends and Saves the Most
Gen X makes, spends, and saves the most money across all generations. That statistic is a strong reminder of to marketers as the peril they face when overlooking our generation.
Gen Xers are currently between 41-56 years old. They make the most money, spend the most money, and save the most money,” according to Brave World Media.”
Also, notes the report, “It’s clear that a rewarding quality of being a member of Gen X is not caring what people think of you, or if they think of you at all, in great part because they are so busy getting things done. However, it would be wise for the marketing and advertising industry to note the Gen Xer influence and not continue to ignore them as the spending powerhouse they are.”
Gen X ‘Punches Above Its Weight’ in Global Spending
Gen X holds the largest share of global spending power at 23.5%. In the U.S., Gen X had an average annual expenditure of $83,357 in 2021—the highest of all the generations. – Visual Capitalist
We also punch above our weight, holding “a 30.4% share of overall power in American society.” – Visual Capitalist
…individualism is a defining feature of GenX—this is exemplified by the generation’s pronounced entrepreneurialism. After all, Google, Amazon, YouTube, PayPal, Tesla, and other iconic companies wouldn’t exist without Gen Xers.
Gen X Leads in Post-Tax Income
Our generation has an average post-tax income of $102,500, which is higher than any other generation. The only generation to top six figures in post-tax income, Gen X is also driving the consumer economy. – The Cambridge Group
Gen X’s average post-tax income in 2021 was an impressive $102,500 – well above that of any other generational group. While Millennials do occupy the next highest spot, they trailed at a distant $84,500 and all other generations came in well below the national average of $78,800.”
Gen X is Looking to ‘Treat Itself’
As Gen Xers become empty nesters and no longer have children at home to worry about, we are looking to do three things: 1) Treat ourselves to new gadgets for the home 2) Travel more and spend on travel-related items, and 3) Focus on and spend more on health and wellness items. – Numerator
Speaking of Travel…
Gen X loves to travel and we definitely outspend other generations, We may travel less, but we take longer time-off periods. And we tend to prefer cultural and educational travel, as well as family travel. – Blueprint RF
Generation X travelers tend to outspend other generations, often due to traveling with larger family groups. They value quality and are willing to pay for high-end accommodation and experiences. On average, Gen Xers spend $914 per trip when traveling.
Gen X is a Major Player in Small Business
Gen X has a whole lot of skin in the small business game and you can expect those numbers to keep growing
People age 55+ make up 21% of the U.S. population, but own a disproportionately high 50.9% of U.S. small businesses,” according to a survey by SCORE, mentors to America’s small businesses.
Gen X is Most Likely to be a Full-Time Creator
Gen X is the mostly likely to be full time creators,” say Kit (formerly ConvertKit), a creator marketing platform.
The 2024 State of the Creator Economy report notes 43% of Gen X creators earn $10,000++ on creator side hustles. This is the largest generational cohort earning 10K-plus on their creator incomes.
What’s more 19% of Gen X creators earn more than $100,000 on their creator side hustles.
Starting a small business is a powerful tool in retirement planning
Some 40 percent of Gen Xers have started (or are considering starting) a small business, according to a piece by Ben Gran over at Motley Fool. Gran says starting a business is a pretty good addition to the retirement portfolio.
…starting a business can be a powerful tool for retirement planning. When you own a business, you can make more money, invest more money, and control your career destiny in ways that many late-career working professionals would love.
– Ben Gran, Freelance Writer via Motley Fool
Meet the Gen X Rebels
The Gen X Rebel is a member of Generation X (1965-1980) who defies traditional norms, values individuality, and makes their mark through entrepreneurship, activism, or creativity. Rejecting the “forgotten generation” label, we are reclaiming the narrative to showcase our position as an economic powerhouse. Shaped by social and technological shifts, we continue to drive innovation. Fiercely independent and skeptical of authority, we define success on our own terms.