But inflation and rising living costs are making things tough for consumers of all ages, and what\u2019s often called \u201cthe forgotten generation\u201d is no exception. Half of them struggle to afford basic day-to-day expenses<\/a> for housing, food, healthcare and the like. More than 4 in 10 (43%) worry about their ability to save. Concern about costs for housing and health care and credit card or personal debt plague them (37%, 34% and 32%, respectively).<\/p>\n Typically born between 1965 and 1980, only 1 in 6, or 16%, say they don\u2019t worry about their finances. The other 84% report having at least some trouble in meeting their daily costs of living and budgets.<\/p>\n That split reflects the K-shaped economy, in which two broad groups of consumers experience very different financial pressures. A much smaller number of wealthier individuals in the top arm of the letter K are thriving, while lower-income consumers in the bottom arm are stagnating or declining.<\/p>\n \u00a0<\/p>\n With tariffs, inflation and higher living costs eating away at their paychecks, many Gen Xers are making changes to how they spend. For instance, 2 in 3 who report feeling financially pressured (or 67% of all Gen Xers) are dialing back their everyday spending on basic such as groceries. More than 1 in 2 of those individuals, and 52% overall, are steering clear of larger purchases, perhaps a new sofa or car, or new investments.<\/p>\n Advertisement: Scroll to Continue<\/p>\n \u00a0<\/p>\n Sure, Americans of all ages are worried and cutting back: Half of all consumers are concerned about their ability to cover their daily living expenses. But Gen X\u2019s heightened worry about saving and planning for retirement and the future (43% vs. 38% overall) is an additional negative pressure on their consumption patterns.\u00a0 When you\u2019re closer to leaving the workforce for good, the economics of spending now vs. saving more now becomes more pressing. The median Gen Xer has saved just $150,000<\/a> for a retirement that could last 30 years, a Natixis Investment Managers analysis from 2024 said. Retirement-fearing Gen Xers who cinch their belts now can pull a big chunk of overall consumer spending down.<\/p>\n Gray Skies Ahead<\/p>\n It\u2019s probably not going to get much better for Gen X finances soon, at least according to their own predictions. As of last September, only 34% said they were optimistic<\/a> about the U.S. economy, while 45% had more of a doom-and-gloom outlook. America\u2019s overall consumer sentiment in January is down nearly 25% compared to a year ago, University of Michigan data shows<\/a>.<\/p>\n Last August, less than half of all Gen Xers told PYMNTS Intelligence that they thought they\u2019d be able to increase their savings<\/a> over the next 12 months. Instead of approaching their personal finances with a growth mentality, these consumers are trying to figure out how to make it through this time as little damage as possible.<\/p>\n![\"\"](\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/01\/Figure-1-Gen-X-breakout.png\")
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