For years, Generation X—the Australians born between 1965 and 1980—have been branded the ‘forgotten middle child’ of finance, sandwiched between the Baby Boomer asset-holders and tech-savvy Millennials. But as we move further into 2025, Gen X is quietly but powerfully reshaping Australia’s economic future. They are hitting peak earning years, navigating complex financial responsibilities, and making decisions that will reverberate across property markets, superannuation, and intergenerational wealth for decades.

The Gen X Financial Profile: Caught in the Crossfire

Gen Xers are a diverse bunch—some are empty nesters, others still have kids at home, and many juggle caring for both children and ageing parents. Financially, they’re at a crossroads:

Peak earning power: Most Gen Xers are now aged 45–60, with the highest median household incomes of any generation, according to ABS data from early 2025.
Mortgage stress and property pressures: Many still carry hefty mortgages, with CoreLogic reporting that Gen X holds the majority share of owner-occupier home loans.
Retirement anxiety: With superannuation balances lagging behind what’s considered comfortable retirement, especially for women, many Gen Xers feel unprepared for life after work.

Recent research from the Association of Superannuation Funds of Australia (ASFA) shows the average Gen X super balance is $252,000—well below the $595,000 ‘comfortable’ retirement target for singles. Meanwhile, almost 40% of Gen Xers are still supporting dependents, making it harder to ramp up savings.

Policy Shifts in 2025: Super, Tax, and Inheritance

Major policy changes in 2025 are reshaping the financial landscape for Gen X:

Stage 3 tax cuts: The July 2024 rollout of reworked Stage 3 tax cuts means mid-to-high income Gen Xers now take home more pay, with many funnelling extra funds into offset accounts, super, or investment property repayments.
Superannuation tweaks: The government’s recent cap on concessional super contributions to $30,000 per year has prompted Gen X to rethink salary sacrifice strategies. There’s also greater scrutiny of early access schemes, especially as economic uncertainty persists.
Inheritance boom: With Baby Boomers expected to transfer more than $3.5 trillion in assets by 2050, Gen X is increasingly focused on estate planning, both as recipients and as the next link in the chain.

Financial advisers are reporting a marked increase in Gen X clients seeking holistic planning, covering not just retirement, but intergenerational wealth transfer and aged care options for parents.

Gen X in Action: Real-World Strategies and Case Studies

How are Gen Xers responding to this moment? Here’s what’s happening on the ground:

Debt reduction is priority #1: Many are using windfalls from tax cuts or inheritance to pay down mortgages early. A recent NAB survey found 62% of Gen X homeowners are making extra repayments where possible.
Downsizing or ‘rightsizing’: With property prices still high, some are cashing out of large family homes in suburbs like Camberwell or Mosman to buy more manageable properties and boost retirement savings.
Side hustles and late-career pivots: With longer working lives expected, Gen Xers are more likely than ever to pursue consulting, online businesses, or upskilling to remain employable past 60.
Prioritising financial literacy for the next generation: Many are opening investment accounts for their kids or setting up family trusts, aiming to break the cycle of financial stress.

Take Michelle, a 52-year-old project manager in Brisbane. In 2025, she renegotiated her mortgage rate, ramped up her super contributions, and is co-investing with her adult children in a regional investment property—a move designed to future-proof the whole family’s finances.

The Road Ahead: Why Gen X Matters More Than Ever

Gen X may be overlooked in the headlines, but their financial choices are quietly setting the tone for Australia’s future. They are the bridge between asset-rich Boomers and the Millennial/Gen Z cohort facing a radically different economy. Their response to today’s challenges—rising interest rates, volatile markets, and new government policies—will shape everything from property prices to the superannuation system.

Gen Xers are not just surviving; they’re innovating. By blending caution with adaptability, they’re showing Australia how to thrive in uncertain times.