Real wages slump leaves Gen X financially drained

Binaya Dahal

Journalist

29 May 2026

Australia’s Generation X is being financially “depleted” by the sharpest erosion in real wages in decades, with many entering their peak earning years worse off than before the pandemic, a survey of 1000 members of the cohort has found.

The study commissioned by Citro, an AMP-backed community rewards platform, shows rising living costs, mortgage stress and expanding caring responsibilities are leaving many Australians born between 1965 and 1980 struggling to recover lost purchasing power, with seven in 10 now at risk of falling short of benchmarks for a comfortable retirement.

More than a quarter of participants said they were providing care to ageing parents, while significant numbers were simultaneously supporting children under 18 and adult children who remain financially dependent for longer amid worsening housing affordability.

AMP chief economist Shane Oliver said the inflation shock that followed the pandemic has inflicted lasting damage, particularly for Generation X workers managing large mortgages and dependent families during what are typically the most financially demanding years of life.

“One of the most important factors shaping Gen X outcomes is that real wages remain materially lower than they were five years ago, despite recent nominal wage growth,” Oliver said.

“For Generation X, this matters more than for most cohorts. These are peak expense years – when mortgages are largest, children are still financially dependent, and caring responsibilities extend simultaneously to ageing parents and family members.”

The research also revealed growing anxiety for the generation about workforce participation later in life. Three in five surveyed expect to work longer than they would prefer, while half expressed uncertainty about remaining employable over the next decade.

Furthermore, six in seven say they have become more focused on their physical health over the past five years, not as part of lifestyle optimisation but because of mounting concerns about ageing, exhaustion and the cumulative effects of long-term stress.

Citro’s managing director Toby Ellis said the findings exposed a major blind spot in how Australia approaches both economic wellbeing and ageing.

“Generation X is holding a lot together in Australia right now – families, workplaces and communities – but they’re doing it quietly and often at personal cost,” Ellis said.

“This research shows a generation that is resilient and capable, but tired, under-recognised and coping rather than thriving. If Gen X enters the next chapter already depleted, the consequences won’t just be personal – they’ll be societal.”