Americans Struggling To Pay Bills — Gen X and Boomers Are Struggling the Most

12/04/2024

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It’s no secret that it’s difficult for many Americans to make ends meet right now, but some are struggling more than others.

According to the 2024 Financial Literacy Survey by GOBankingRates, 13% of Americans do not currently bring in enough money to cover their bills, and 46% barely bring in enough to cover their bills.

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The generations struggling the most are Gen X, between 44 and 59 years of age, and baby boomers, who are between 60 and 78. Let’s take a closer look at the results of the survey and consider the challenges for these age groups.

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Gen X and Boomers Report Not Being Able To Cover Their Bills

The majority of Gen Xers and boomers are able to cover their bills even if they have to struggle. However, some report not being able to make ends meet.

Out of younger Gen Xers who are 45-54 years old, 17% claim they don’t make enough money to cover their bills according to our survey. Out of older Gen Xers who are 55 to 59, 18% don’t make enough money to cover their bills.

Out of younger boomers who are 60 to 64, 18% don’t make enough money to cover their bills. However, only 7% of older boomers (65 and over) are unable to cover their bills.

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Others Say They Can Pay Their Bills — But Just Barely

Of those Gen Xers and boomers who report being able to pay their bills, there are quite a few who are just barely scraping by.

Out of younger boomers (60-64), close to half — 48% — barely make enough to cover their expenses. And 38% of boomers 65 and over say they barely scrape by when trying to cover their bills.

Regarding older Gen Xers, ages 55-59, 48% are struggling to pay their bills, and 50% of younger Gen Xers (45-54) are in the same boat.

Why Gen X Is Struggling More Financially

Aaron Cirksena, founder and CEO of MDRN Capital, said that Gen Xers face unique financial challenges compared to other generations. He explained that Gen X is considered the “sandwich generation,” which means they are caught between supporting their adult children and aging parents, including those residing in retirement homes.

“They also may have learned financial habits from baby boomers, who we are learning may not have been the most fiscally responsible,” Cirksena said. “Boomers faced a lot of economic downturns and may not have prioritized their finances, forcing Gen Xers to figure out finances by themselves.”

Why Boomers Are Struggling More Financially

Cirksena said that boomers don’t have the best record economically due to the financial and economic turmoil present during their working years.

“The downturns of the economy, unstable markets and fluctuating employment during their peak working years have left many boomers with little retirement savings and limited financial security,” he said. “Not to mention the increase in healthcare costs that they may be encountering now.”

Helpful Advice for Gen X

Cirksena said that his advice for Gen X can be applied to most generations.

“Create a budget, pay off high-interest debt, start maximizing your retirement funds, cut out unnecessary costs, diversify investments and think about your long-term financial goals and how you need to prepare for that,” he said.

Erika Kullberg, attorney, personal finance expert and founder of Erika.com, said Gen Xers should keep expenses under control, track every penny and cut back wherever possible. She also recommended saving first.

“Put aside cash for emergencies (around six months of living expenses), making maximum contributions to retirement vehicles after that,” she said.

Other recommendations from Kullberg included talking to a financial planner and considering a comprehensive financial plan to help make sense of long-term financial goals. Additionally, she suggested seeking out new income sources. “See where you can make additional money on the side through a side hustle or freelancing.”

Helpful Advice for Boomers

The advice for boomers is a little different since they are either retired or getting close to retirement.

“Reassess your retirement savings,” said Cirksena. “Figure out how to live within your means, whether that means downsizing, taking a more conservative approach in investing, etc. Go through your assets, cut out any unnecessary costs [and] maximize your Social Security benefits. Know when you should retire (aim to reach your full retirement age so you can receive full benefits).”

In addition, Kullberg suggested that boomers consider scaling back if possible. “Can you reduce the size of your home or otherwise change your lifestyle to allow yourself to spend less and save more to build up a pension?” she queried.