Six out of 10 people from Generation X, aged between 45 and 54, have not yet prepared for their retirement. This comes from the 2024 trend report published by Woori Financial Group on Monday. The report, which surveyed 10,000 people aged between 20 and 69 across the country, revealed that only 39.3 percent of Gen Xers are currently preparing for retirement.
The average monthly income of Gen Xers is 6.24 million won ($4,300), which is over 1 million won higher compared to millennials and baby boomers. However, the expenditures of Generation X are also the highest, primarily due to the financial support they provide to both parents and children. This significant family burden makes it difficult for them to adequately prepare for their own retirement.
In the survey, 43.2 percent of Gen Xers responded that they support both their parents and children. This is nearly double the rates for millennials at 23.4 percent and baby boomers at 21.6 percent. Woori Financial underscored that Generation X has become a key demographic as it plays a central role in the country.
However, as attention shifts toward trendsetting millennials and Gen Z, their presence is gradually diminishing.
Gen X faces financial challenges
“Given their population share and socioeconomic influence, they still deserve attention,” the report said.
“Generation X is struggling with the burden of supporting their families while putting their own retirement preparations on the back burner. With only 10 to 20 years remaining until retirement, it seems crucial for them to start making preparations soon.”
Unexpectedly, a recent survey showed that Generation X, who was born in the 1970s, had the most leverage investment experience. When asked if they had experienced leveraged investment, 27.1% of Generation X responded positively.
This is a higher rate than the older generation of baby boomers (22.6%) and even higher than M (21.9%) and Gen Z (21.1%). Regarding the financial and investment product holding rate of Generation X, stocks accounted for the largest share at 60.8%, followed by savings insurance, funds, and virtual currency. Woori Financial stated, “Gen X is open to new investment opportunities by experiencing virtual currency or leveraged investments,” adding, “We are increasing assets by trying to make aggressive investments.”
The report provides insight into this trend in the section titled “Preparation for the Future of Generation X.” According to the survey, 85.3% of Generation X supports parents or children, with 43.2% providing financial support to both groups.
This suggests that the burden of supporting both parents and children has spurred more active investment. However, their preparation rate for retirement is only 39.3%. Woori Financial explained, “Generation X’s preparation for retirement is impacted by the burden of economic support for parents and children.”
