X FACTOR - Inside the $7 trillion generation

While the media spotlight often shines on the wealth of baby boomers and Gen Y, it’s the largely ignored Gen X who may soon find themselves quietly holding the financial reins. 

In fact, this generation is emerging as the axis around which other generations’ financial realities spin. 

Over the next 20 years, this group – aged between 45-54 – is set to receive more than $3.5 trillion in inheritances from their baby boomer parents.

They are also expected to pass on a significant portion of their accumulated wealth to their Gen Y children (aged between 25-34) who may soon be asking for parental help to join the property market.

Gen X's total average household net wealth of $3.6 trillion gives them substantial economic sway, with their spending habits and investment choices rippling through industries, markets, and small businesses.

How this cohort chooses to build, spend, and pass on their wealth, as the eldest members contemplate retirement, has implications for all other generations.

Here we break down the best financial strategies for Gen X to grow and allocate their funds as well as how those choices may affect others.

STORY ALEXANDRA CAIN

Here’s a wake-up call. If you’re a Gen X who is 55, you only have 3650 days until you’re 65, a traditional age for retirement. You’re part of a group whose ideal time to plan for retirement is now.

Many Gen X will have paid off, or almost paid off, their homes and finished, or almost finished, raising their kids. But they still have a decent amount of time to build a sizeable retirement nest egg before they leave work for the last time.