Gen X is the most indebted generation in America. Their employers can fix that

Often called the “sandwich generation,” these 40- and 50-somethings are financially squeezed by the burden of caring for their aging Baby Boomer and Silent Generation parents and simultaneously covering their Gen Z children’s college tuition, all while still paying off their own mortgages, credit cards, and particularly student loans.

Gen Xers are by far the most indebted group of Americans, in large part because they have some of the highest student loan balances. The average Gen Xer with outstanding student loans owed over $38,000 in 2025 — considerably more than the roughly $33,000 owed by the average Millennial borrower and the nearly $22,000 owed by the average Gen Z borrower, even though Gen Xers have been out of school much longer.

This debt burden leads to higher stress and sleepless nights, and directly undermines the focus and efficiency of Americans in their prime working years. Fortunately, it’s increasingly possible for employers to ease this financial strain, and put their employees — especially Gen Xers — on the path to a debt-free future, and boost while boosting loyalty and productivity in the process.

Debt forces hard decisions. People struggling with student loans, in particular, must often choose between covering today’s bills and saving for tomorrow. The first thing to go, understandably, is saving for retirement.

But as any financial advisor would warn, each decade of delay reduces the amount of money available at retirement by roughly half.

Most Americans have access to 401(k)s or similar retirement savings programs through their workplaces. But relatively few workers are able to contribute enough to ensure a comfortable retirement. Just 16% of Gen Xers feel they have enough saved for retirement. The median member of Gen X had just $40,000 saved for retirement, according to a 2023 study — and 40% had nothing saved at all.

Gen Xers’ struggle to save for retirement is real. But employers can help by contributing to employees’ retirement plans while those workers focus on paying down student loan debt.

That’s precisely what my company, Abbott, has done. When we launched our Freedom 2 Save program in 2018, we sought to alleviate employees’ debt burden by giving them the option to focus solely on paying off their student loans, while we contribute to their 401(k)s. Employees who put at least 2% of their salary toward student loan payments receive an automatic 5% company match in their 401(k).

Since the program’s launch, we’ve contributed over $10 million to employees’ retirement accounts while they paid off $16 million in student loans. Starting this year, we’re expanding the program so that employees who pay down student loans for their dependents, including spouses and children, will qualify for the additional retirement benefit.

For Gen Xers with kids in college, that flexibility could provide the financial edge they need most.

Starting in 2024, a law known as the SECURE 2.0 Act made it easier for other employers to replicate this model of matching employees’ student loan payments with 401(k) contributions. And more companies are following suit. Nearly two-thirds of employers now offer, or plan to offer, some form of student loan debt assistance, according to the Employee Benefit Research Institute.

Employers realize that investing in their workers’ financial well-being is a win-win. Financial insecurity is one of the biggest concerns for workers of all ages. One survey found that a majority of financially stressed workers spend at least three hours per week at work handling personal finance issues — the equivalent of almost a month of lost productivity each year. Those employees are also twice as likely to look for new jobs.

By contrast, employees who feel financially secure are more productive, engaged, and loyal. Nearly 70% of workers who aren’t financially stressed say they see a promising future with their current employer.

In short, helping workers gain financial stability gives employers a competitive advantage.

The sandwich generation has been shouldering a heavy financial burden for far too long. Employers can help ease that burden, and set themselves apart in the labor market, by adopting innovative benefits that help employees get ahead — not just catch up.

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