Generation X holds a substantial but often overlooked share of America’s wealth. According to recent data from SmartAsset, Gen X — Americans born between 1965 and 1980 — currently owns $43.70 trillion in assets, representing 26.1% of the nation’s total $167.26 trillion in wealth.
While this makes them the second-wealthiest generation behind baby boomers, the story behind these numbers reveals both advantages and challenges for this demographic.
The Wealth Breakdown
Gen X’s wealth position places them ahead of millennials and Gen Z, who collectively hold just 10.7% of total U.S. wealth, but well behind baby boomers, who command a dominant 51.1% share. The Silent Generation and earlier cohorts hold the remaining 12.1%.
What’s particularly striking is how wealth concentration has shifted over time. In 1990, middle-aged households (roughly today’s Gen X age range) held nearly 32% of all wealth. Today, that figure has dropped to around 20%, suggesting wealth has migrated toward older Americans who benefit from decades of asset appreciation rather than current earnings.
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Factors Driving Gen X Wealth
Several key factors have shaped Gen X’s financial position. Many Gen Xers entered the housing market before prices skyrocketed in the 2000s, allowing them to build equity as home values appreciated. Those who invested early in retirement accounts like 401(k) plans and IRAs also benefited from strong market returns over the past two decades.
However, Gen X has faced its share of financial headwinds. This generation experienced the dot-com crash early in their careers, the 2008 financial crisis during their prime earning years and the 2020 pandemic recession. Many also carry the dual burden of supporting aging parents while helping adult children navigate student debt and high housing costs.
The Great Wealth Transfer
Gen X stands to benefit significantly from what experts call “the great wealth transfer.”
According to Fortune, Gen Xers are projected to inherit approximately $1.4 trillion annually over the next decade as baby boomers pass down their assets. This wealth transfer could significantly boost Gen X’s financial position in the years ahead, though the distribution will likely be uneven, with some receiving life-changing sums while others see little due to healthcare costs and uneven asset distribution.
Building Wealth Going Forward
For Gen Xers looking to strengthen their financial position, experts recommend several strategies. Maximizing retirement contributions remains crucial, especially for those who started saving later. Diversifying investments beyond employer-sponsored plans can provide additional growth opportunities.
Paying down high-interest debt should be a priority, as should protecting wealth through proper insurance coverage and estate planning. For Gen Xers who haven’t yet purchased a home, exploring first-time buyer programs or considering markets with lower entry costs may still offer pathways to homeownership.
Finally, working with a financial advisor can help Gen Xers create a comprehensive wealth-building strategy tailored to their unique circumstances. With retirement potentially just 10-20 years away for many in this generation, strategic planning now can make a significant difference in long-term financial security.
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This article originally appeared on GOBankingRates.com: How Much Wealth Does Gen X Have? The Answer May Surprise You
