9 Ways Gen X Got Swindled Out of a Prosperous Life

Gen X, also known as the "forgotten generation," faces some serious financial challenges. Born between 1965 and 1980, this group struggles to remain financially stable. In fact, according to a report by the American Bankers Association, only 33% claim to save for any sort of emergency fund.

Despite having a solid work ethic and an independent attitude, Gen X was dealt a tough hand and continues to try to find ways to eliminate money stress. Here are nine reasons Gen X became the financially forgotten generation, and how most factors continue to be out of Gen X's control.

Because of the time period in which Gen X was born, they were hit hard by the Great Recession of 2008. Suddenly, without any preparation, Gen X faced higher rent, lower pay, and poor job security.

Research shows that many Gen Xers who lost their jobs at the time continue to struggle with the basics, such as utility and rent payments. Many have had their mortgages foreclosed. For some, the long-term impacts make it challenging to regain their financial footing.

Pre-existing debts don't help. Despite some student debt forgiveness, members of Gen X are continuing into middle age with deep pockets of college debt. In fact, according to the U.S. Department of Education, the youngest Gen Xers are likely to have student loan balances of over $44,000.

There are 14.4 million Gen X ex-students in debt, compared to just 6.4 million Boomers. For many, this debt has a high probability of continuing into retirement.

Speaking of retirement, pensions have given way to defined-contribution plans, often in the form of the popular 401(k). Unfortunately for Gen X, they were the first generation to trial the 401(k), with some investment specialists referring to them as "The 401(k) experiment generation."

Adapting to a new type of plan was likely confusing for many Gen Xers, as there weren't similar portfolios to look to as successful examples.

The results of the 401(k) experiment might also be the cause of Gen X's savings rising at a sluggish rate because they found it difficult to make large contributions.

Credit card debt, loans, and unexpected expenses all impacted how Gen X first invested in their 401(k) plans. Plus, the sudden shift from defined benefits (pensions) to defined contributions likely left some uncertain about the best ways to save for the future.

An additional factor that continues to make it difficult for some Gen Xers to contribute to 401(k) plans is their role as the current "sandwich generation."

The sandwich generation refers to individuals that have to care for both their kids and their parents — making them stuck in the middle and unable to focus on your own spending or saving. Out of everyone currently doing this double duty, 81% are members of Gen X.

A ripple effect of caring for parents and elder relatives is a longer wait for inheritance. While it may seem rather cold or cynical, a 25-year plan often includes the money expected from or promised by aging parents.

With people living longer than ever before, Gen X has to wait longer for money they potentially earmarked for a house or other major purchase.

Planning ahead is easier when you have a high level of financial literacy. It's much simpler to start investing, for example, when you've grown up with financial apps and online stock advice at your fingertips.

Here, Gen Z has the advantage. For some members of Gen X, it may feel like they've been left behind.

Although wages are on the rise, so is the cost of living. Gen X could be feeling the pinch more firmly than other generations because of the not-so-hot job markets they've faced.

And when gas, rent, and utilities compound every month, even the smallest wage increases barely make a dent. For Gen X, the wage to cost-of-living ratio might not be so hot.

Buying a home is one way to ensure assets for the future. However, for Gen X, the housing market collapse of 2008 left a lasting mark. According to the National Association of Realtors, just 24% of recent homebuyers were Gen X.

And if they are lucky enough to own a home, selling has become more difficult for many. Gen X may be stuck for the foreseeable future, with limited options to sell or relocate.

From unexpected retirement plan changes to recessions, Gen X has seen it all. The tough times they've been through have left many in dire financial straits. However, there's always time to improve any financial situation.

If you're a struggling Gen Xer, focus on paying down debts and reducing your overall monthly expenses. Careful budgeting and saving could be part of the answer to Gen X's financial hardships.