Recession Sliced Gen Xers' Net Worth in Half

They lost average of $33K each
By Matt Cantor,  Newser User
Posted May 31, 2013 8:17 AM CDT

(Newser) – Bad news for Generation X: It turns out that those born between 1966 and 1975 were hit hardest by the recession in terms of wealth loss, a Pew study finds. Between 2007 and 2010, Gen Xer's net worth was cut almost in half. Members of the generation, now ages 38 to 47, lost an average of $33,000 each, a particular problem for a group that already had relatively low wealth and more debt than other generations, the New York Times reports. If they retire at 65, they're likely to have just enough money to replace half their employment income, compared to the 70% finance experts recommend.

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Baby boomers born between 1956 and 1965 may also struggle at retirement, but boomers born between 1946 and 1955 appear poised to replace 70% to 80% of their income. "As policymakers focus on Americans’ retirement security, particular consideration should be paid to how younger generations of workers can make up for these losses and prepare for the future," says a Pew rep. (Read more Generation X stories.)

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