Why the 'forgotten generation' is a powerful force in wealth management, consumerism

Why the 'forgotten generation' is a powerful force in wealth management, consumerism
Gen X is a powerful cohort that controls huge wealth but also faces retirement challenges.
JUL 15, 2025

The approximately 65 million Americans born between 1965 and 1980 are sometimes described as the ‘forgotten generation’ but those who continue to ignore this powerful cohort do so at their peril.

Gen X grew up at a time when developed economies were beginning to surge, although many missed out on acquiring assets, especially homes, like their Baby Boomer parents did before the fast appreciation of value that has come since.

However, this significant generation has acquired wealth and is a key driver of consumer spending. And while Millennials are often seen as likely to gain the most from the Great Wealth Transfer, Gen X is still set for a $1.4 trillion windfall.

Recent research from Nielsen IQ highlights the power of Gen X. It calculates the generation’s buying power at $15.2 trillion in 2025 and projects it to reach $23 trillion by 2035. Gen X has been the highest-spending generation in the world since 2021 and is outpacing Gen Z by 40% in 2025 alone. The report states that: “The US is on the cusp of becoming a Gen X economy.”

Fastest-growing spending categories for Gen X globally from 2025-2030 include Elder & Dependent Care, Bicycles, Outdoor Recreation Durables, Education, and Household Tools. This reflects their "caretaker" role – often looking after both parents and children - and evolving lifestyle.

“Gen Xers are the gatekeepers of trillions in spending, effectively serving as the CFOs of three generations—their own, their children’s, and their parents’,” said Wolfgang Fengler, Co-founder & CEO of World Data Lab, which collaborated with Nielsen IQ on the report. “Brands and retailers that invest in them today will see measurable growth and long-term return on investment.”

For wealth managers, an interesting takeaway is that Gen X’s discretionary spending is lower than younger generations, which it says is likely partly attributable to “a focus on retirement savings.” This should be taken in context of 18% of the generation having no retirement savings and 47% of Gen Xers expecting to retire later than anticipated.

“As Gen Xers simplify their lives in retirement or semi-retirement, we anticipate their spend will more closely resemble Boomers at the same life stages,” the report states.   

The challenges for Gen X in retirement were also highlighted recently in research from Cerulli.

“Gen X households have faced much more financial and career upheaval early in their financial journeys than had been expected. In fact, no generation lost a greater percentage of its net worth between 2007 and 2010 than Gen X households—their median net worth falling 38%, from $63,000 to $39,000,” said Chayce Horton, senior analyst at Cerulli. “With stunted market growth from 2000–2010, many Gen X households lack a sense of comfort with their future retirement.”

The Nielsen IQ report also provides valuable insights into Gen X consumer behavior that should inform marketing communications to this significant share of the population:

  • Gen X is willing to pay for quality and convenience, but only if the value proposition is clear.
  • Gen X's loyalty is earned through positive brand experiences and reliability/consistency, rather than hype or social proof (e.g., influencers). They are open to new brands if existing ones fail to meet expectations or deliver clear value.
  • Products and services that simplify complexity, offer durability, reliability, and easy setup will resonate with Gen X.
  • Emphasize clear functional benefits, time savings, and improved performance when communicating about financial products and services.

“Gen X is at the center of a major economic shift—driving spending across categories while managing the demands of multiple generations,” said Marta Cyhan-Bowles, Chief Communications Officer & Head of Global Marketing COE at NIQ. “The data is clear—Gen X’s influence is profound and far too frequently overlooked by brands. This cohort will continue to shape the future of the global consumer economy for years to come.”

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