Gen X are the proud, independent latchkey kids who came of age in a mosh pit. But retirement is hitting the MTV generation hard. Based on our Gen X case study, nearly half of people born between 1965 and 1980 are unsure if they’ll be able to retire by 65, compared to optimistic Baby Boomers. Yet, when their backs are up against the wall, these “slackers” are tapping into their adaptability, passion, and purpose to redefine retirement on their own terms.
Many workers in previous generations had employer-funded pensions, which provided guaranteed, predictable income after retirement. Now, pensions have largely gone the way of the Commodore 64. Xers were the first cohort of American workers who’ve had to rely on defined contribution plans like 401Ks, which put the responsibility of saving and investing on the individual. Many were not educated about saving for retirement when they started work, so they may not have begun contributing until late in the game.
Some Gen Xers haven’t been able to amass wealth or save for retirement like their parents did due to major economic downturns during critical periods of their lives. They may have gotten laid off in the dot-com bust in the early 2000s. They may have lost jobs or homes or had investments wiped out in the Great Recession of 2008. Then came COVID and inflation.
On top of that, Gen X is a so-called sandwich generation. Many became parents later in life, so they’re simultaneously raising children and caring for aging parents without much financial wiggle room. In fact, they may have recently paid off their own college loans — just in time to pay for their children’s higher education.
As a result of these challenges, Gen X is approaching retirement with a proactive, entrepreneurial mindset. Not only because they have to. They want to!
Cynical, self-reliant Gen X workers are profoundly entrepreneurial, valuing independence above all. While their retirement gap is daunting, they’re willing to bet on themselves, determined to make their own way by pursuing their passions and interests. Of those we surveyed, 45% of Gen X participants view business ownership as a stable path to financial independence during retirement. Nearly 40% are likely to start or have already started a business — not just as a way to fund their retirement, but as a means to redefine it.
You know those parents who bought themselves razor scooters to ride to school with their kids? They’re not counting down to days spent on the golf course. They might still be skateboarding! Gen X is ignoring limiting beliefs about aging and monetizing their passions.
“For many Gen Xers, retirement is no longer about stepping away from work — it’s about stepping into something new,” said Ross Buhrdorf, CEO and co-founder of ZenBusiness. “As ‘Encore Entrepreneurs,’ they’re using business ownership to pursue their passions and create long-term financial security on their own terms, redefining what retirement can look like in today’s world.”
Many are adding side hustles to full-time employment, taking chances that challenge them and provide flexibility as well as fulfillment. ZenBusiness employee Mica Graves benefited so much from participating in fitness during the pandemic that he invested his own money and partnered with others to open three franchise gyms. “I don’t have a fixed date for retirement,” he says. “I absolutely think I’ll be doing something else, whether it be investment properties or another type of franchise.” As a result of pursuing his passion, he’s not only growing a business but is deeply embedded in a supportive community. Mica says: “I love my full-time job. But the gyms have given me flexibility and made me engage outside of my comfort zone. If I didn’t do this, I would have always wondered.“
Shout out to those who remember the now-laughable lag times of dial-up internet, made friends on message boards, or took a hypertext class in college! Since Gen X came of age with the early days of at-home computing and participated in creating the internet, they’re equally as comfortable with emerging technologies and IRL relationship building — –a huge boon for business ownership. They’re not afraid to pick up the phone or jump in and code. They’re comfortable with the uncharted territory of new technology and all its glitches, workarounds, and fixes. This flexibility is a huge asset in starting businesses.
Because of their experiences, a relatively high percentage of Gen Xers are excited about the possibilities of AI, picking it up as a tool like any other in their DIY toolkit.
Thirty percent of our survey respondents believe that AI can streamline business operations, making it easier to manage a company while still enjoying flexible time during their newfangled retirement.
This generation was originally given the moniker “X” because they refused to be defined by societal pressures. Coming of age in a time of rapidly shifting societal, economic, and technological changes has equipped them with a high tolerance for the unknown — which they’ll need! The fact is, many will not be able to stop working with enough money in the bank to sustain them. In accepting this, they’re creating opportunities to live in alignment with their passions and values. They are changing the narrative for themselves with the same grit and innovation they’ve relied on for decades.
For Gen X, retirement isn’t an end; it’s just another transition. The path is one they’ll forge on their own.
Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.
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