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December 12, 2021

Looks like each generation has it rough this time: report

The recession and subsequent sluggish economy appears to have impacted the generations differently.

And the most notable dichotomy is surfacing among the two youngest adult generations: Millennials and Generation X, according to a report from Financial Finesse, a large provider of workplace financial wellness programs across the border.

Millennials are managing their finances surprisingly well despite having by far the lowest income levels while Gen Xers are having a harder time with debt, making ends meet, and most aspects of overall financial planning, the report suggests.

Early and late baby boomers with young children appear to be over-prioritizing college planning at the cost of their own financial security, leaving themselves vulnerable as a result of not taking care of their own needs.

Retirement planning remains the one issue all generations are likely to come up short, particularly late  boomers that are on the cusp of retirement. 

Within this group, 50% haven't even bothered running a retirement projection, and only 25% feel they're on target to retire comfortably.

While this is concerning, even lower numbers for younger generations could pose a greater threat considering that younger employees are less likely to receive full government pension benefits and more likely to face higher taxes and inflation when they eventually retire, says Financial Finesse CEO Liz Davidson.

“When you look at the groups as a whole, you recognize that they are really dealing with issues stemming from perspectives and habits rooted in their generations. Millennials entered the workforce during a time when it was ‘cool’ to be thrifty, Gen Xers lived in the shadow of the Boomers and have a generally cynical attitude toward achieving their goals, and Boomers—both late and early—are part of a generation that had everything tailored to their needs. This really creates a different set of issues as a result for each group.”

Does this report reflect your reality? Or is demographics just one small part of the equation?

By Gordon Powers, MSN Money



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Gordon PowersGordon Powers

A long-time fund company executive, Gordon Powers now heads up the Affinity Group, a financial services consulting firm. Gordon was a personal finance columnist for the Globe & Mail for many years, has taught retirement planning...

Jason BucklandJason Buckland

The modern-day MC Hammer of money, Jason can often be seen spending cash that isn’t his with the efficiency of a Wilt Chamberlain first date. After cutting his teeth as a reporter for the Toronto Sun, he joined the MSN Money team with...