In my small town near Orlando, Florida, ground continues to break on new retirement communities. "55+, Luxury Amenities" is advertised on large billboards outside the construction sites, sometimes complimented by a photo of two smiling, silver-haired individuals who silently assure you that they are having the time of their lives. Their screen-printed eyes stare into yours, guaranteeing that for a small sum of $300,000 (or more, plus upgrades and HOA fees), a life of ease lies ahead, so long as all the neighbors are the same age as you.
The age-exclusive retirement community, most popularly marketed and branded by developments such as The Villages in Central Florida or Sun City in Arizona, were first popularized by the G.I.s. A Hero generation, the G.I.s who bought up ticky-tacky box houses in Levittown as young, post-war adults in the 1950s found the same situation ideal when it came to retirement. According to this article in the Wall Street Journal, Sun City sold out its opening three-year inventory in just twelve months.
That trend has remained strong throughout the last 50 years, but as the oldest of Generation X reaches age 60 this year, will it continue?
I doubt it.
Unlike the G.I., Silent, and Boomer generations, Generation X is, in many ways, fiercely independent. This Nomad archetype is known for an unprotected childhood, a risk-filled young adulthood, risk-averse middle age, and a solitary elderhood. Many struggle with connection, feeling generally ambivalent about each others' company (as parodied in this Babylon Bee article where a Gen X-exclusive community decides that life together is just "okay" and "whatever.") Can you imagine the world-weary, post-addiction, Gen X leads of Jagged Little Pill: The Musical living out their "golden years" playing backgammon at Del Boca Vista?
Not to mention, those years aren't likely to be so golden. Despite the fact that many marketers are ignoring Generation X when it comes to retirement homes, there is a good handful of articles warning aging "Slackers" of slacking on retirement. David Rae of Forbes says here that "... recent surveys have shown that more than one-third of Gen Xers have literally zero retirement savings" (my emphasis). The Center for Household Financial Stability notes in their 2018 report that "...members of all birth cohorts lost wealth around the Great Recession, but only typical families headed by someone born in 1960 or later had failed to get back on track by 2016." (That's Generation X, by the way, born 1961-1981.)
It's easy to see why some Generation Xers may be reluctant to invest in a stock market that's failed them thrice (1987, 2001, 2008) but here and here David Rae encourages that there's time to make up lost savings using a 401k (even if they've watched their Silent and Boomer parents succumb to bad advice from investment advisors in the past). Kiplinger agrees there's still time to save, but only if Gen Xers start immediately or take on a second career to keep the cash flowing.
And then, there's the sandwich problem.
Defined by Pew Research as "those who have a living parent age 65 or older and are either raising a child under age 18 or supporting a grown child", this emerging middle-aged lifestyle is quickly becoming mainstream as it trades hands from Baby Boomers to Generation X. Some in the middle are providing financial support to elders in addition to offspring (perhaps an overlooked factor in the "literally zero" retirement savings). Many provide social or emotional support too. Still others actually live with or near their elders and offspring simultaneously, thanks to the new trend of "aging in place". Aging in place means staying in one's own home for as long as possible, and bringing help in. Guess who the help is?
Right again. Generation X does research on retirement housing for their elders, coordinates caregiving for elders, and in some cases, directly provides care for elders.
In spite of this, many Gen Xers report being just as happy as other un-sandwiched adults. Their precious, cocooned Homelander offspring are there to provide yet another purpose in life, and their commitment to independence and diversity is best expressed in the communities they've built themselves-- rather than some distant collection of uniform box-houses occupied by a set age and income group, and governed by a strict HOA.
So maybe that's why, according to AARP, "nine out of 10 Gen Xers surveyed by Ameriprise said they think their retirement wouldn't fit the traditional mold." Generation X knows there is no escaping the sandwich. But in the end, they wouldn't want to anyway.
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