Gen X is the most economically pessimistic generation, new study claims

Generation X has gone from the biggest hair to the biggest midlife crisis ever.

The Slacker Generation is the most economically pessimistic, as members of the 40-and-50-something club go through middle age squeezed by growing expenses, as new report has found.

The children of the 1980s have failed to find Regan-era optimism, as they have reported the lowest consumer confidence while beginning to contemplate retirement, according to a Conference Board study reported by Axios.

Gen X is the most economically pessimistic generation, new Fed data shows. David – stock.adobe.com

One economist says that a typical midlife malaise could be a major contributing factor to the “forgotten generation’s” lack of economic nirvana.

Studies show that happiness usually follows a U-shaped curve in the course of our lives, with youthful happiness fading over time and bottoming out in the mid- to late-40s.

The survey asked respondents whether they felt current US business conditions were good or bad and calculated a six-month average, with 100 indexed to the average in 1985.

Gen Z and millennials aged under 35 had the highest overall consumer confidence, followed by Baby Boomers and then Gen X, which the report said were between ages 45 and 61.

The six-month average of the Consumer Confidence Index for Gen X is down to 78 points, the lowest in at least four and a half years, with Boomers down to 83 points, the lowest since October 2021.

Studies show that happiness usually follows a U-shaped curve in the course of our lives, with youthful happiness fading over time and bottoming out in the mid- to late-40s. Andrii Iemelianenko – stock.adobe.com

Confidence readings for both groups have been in a steady decline since early 2025, data shows.

Gen Z confidence rose slightly in April to just about 108 points, just a few points above Millennials.

Gen X is stuck as the “sandwich generation,” caring for both aging Boomer parents and Gen Z children, Conference Board chief economist Dana Peterson told Axios.

Gen X also feels unprepared for retirement, despite currently being in their peak earning years, with only 35% feeling prepared to financially support their parents and just 55% saying they feel they can financially support their children over the next few years, according to a report from NielsenIQ.

The generation is expected to lead global consumer spending at least through 2033, possibly until 2036 in high-income markets, and is already commanding over 30% of US household spending.

While Boomers still dominate in net worth, Gen X was on track to spend $15.2 trillion worldwide in 2025, a figure set to climb to $23 trillion by 2035.