Much has been written about the how millennials today are slower to marry and buy homes than young people of the same age in previous generations, but they are not alone. Their Gen X elders have also fallen behind in the markers for economic maturity.
According to a new report from the Employee Benefit Research Institute (EBRI), Gen X households — called the “sandwich generation” because they’re caught between paying for college, caring for their parents and saving for their own retirement — are also less likely to own a home than prior generations of the same age, 40 to 51.
Slightly more than 65% of families headed by a Gen Xer owned their home in 2016, down from just over 75% and nearly 72% in 2004 and 1992, respectively, according to EBRI.
Similar differences were seen for the percentages of Gen-X-led families having any type of retirement plan: 67% in 2016 versus roughly 72% and 73% in 2004 and 1992.
Gen-X-led families in 2016 also had higher debt-to-asset ratios — 34% in 2016 compared with 30% and 22% in 2004 and 1992, respectively, and, most important, a lower median family net worth: $103,130 versus roughly $152,000 and $108,000 in 2004 and 1992, respectively, in 2016 dollars.
Not surprisingly, the percentages of families owning homes or having any type of retirement plan were greatest for those families with incomes in the highest quartile and lowest for those with incomes in the lowest quartile.