High Earners, Low Savers?

What Gen X and Boomers Are Getting Wrong About Saving

If we were competing in pub trivia on the question “Which generations drive the most deposit growth for banks and credit unions?” I would bet most fintechs would say “Gen Z and Millennials,” and most bankers would say “Gen X and Baby Boomers.” Makes sense, given that the older cohorts earn more on average, hold more wealth, and should, on paper, be the most reliable savers.

But the story behind the story tells us that, despite their financial positioning, Gen X and Boomers are not saving as aggressively as expected. And it’s important for bankers to understand this “High Earners, Low Savers” paradox, because it unveils a major opportunity.

I assimilated data from several key sources on the topic of older generations’ savings profiles, and you may be as surprised as I am to realize that none of the research studies contradicts each other. Please do download and read each of these reports, as they’re valuable and can be immediately applicable. Additional source material links are cited throughout this article.

• “State of Savings” report, Plinqit, 2024
• “Stemming the Deposit Outflow: The $2 Trillion Investing Opportunity,” Cornerstone Advisors, 2025
• “The Next-Generation Digital Banking Platform,” Cornerstone Advisors, 2025
• “Gen Z: A New Economic Force,” Bank of America Institute, 2025
• “Anticipatory Banking: Establishing Primacy Across Generations” report, Alkami, 2025

Also, for this article, assume the following generational breakdowns.

• Baby Boomers (1946-1964)
• Gen X (1965-1980)
• Millennials (1981-1996)
• Gen Z (1997-2024)

The Underlying Disconnect Between Intent Versus Behavior

Plinqit’s 2024 State of Savings report revealed that over 50% of Gen X and Boomers save 10% or less of their income each month, compared with nearly half of Gen Z who save more than 20%.

• Only 17–18% of Gen X and Boomers save more than 20% of their income, compared to 47% of Gen Z.
• Nearly 35% of Gen X have less than $10,000 saved, and 18% have no savings at all.
• Just 14% of Gen Xers feel confident about retiring comfortably.

For community banks and credit unions, these figures represent both risk (deposit leakage) and opportunity (new product engagement).

Savings Behavior by Generation

Source: Plinqit State of Savings, Cornerstone Advisors, NIRS, Fidelity

Deposit Flight Is Not Just a “Young Consumer” Problem

It’s tempting to blame fintech-driven deposit outflow on Gen Z and Millennials. But Cornerstone Advisors’ Deposit Outflow study found that 65% of the $2.15 trillion that shifted from traditional financial institutions to fintech accounts came from Gen X and Boomers.

The reason? Fintechs deliver better rates, transparency, and digital experiences while many banks still struggle with platform integration and personalization.

And as Alkami’s Generational Trends in Digital Banking study shows, digital is now the primary gateway to trust. Half of U.S. consumers say they would switch providers if another offered a better digital experience, and 31% already have.

Holding deposits isn’t enough. To stop leakage, financial institutions must deliver seamless, anticipatory digital experiences.

Retirement Readiness – Gen X vs. Boomers

Is Gen Z a Mirror for the Future?

Contrasting Gen X and Boomer under-saving with Gen Z’s “over-saving” (if there can be such a thing) but over-spending financial reality is instructive.

According to Bank of America Institute, Gen Z is on track to become the largest and richest generation by 2035, with projected global income of $36 trillion by 2030 and $74 trillion by 2040. Their influence will be enormous, but their savings habits are just as concerning.

In February 2025, BofA data showed that Gen Z’s spending-to-savings ratio was 1.93, meaning they were spending nearly twice as much as they had in savings. While wage growth for Gen Z is strong, they face a tougher labor market, with unemployment among new entrants rising nearly 10% year over year.

For bankers, the implication is clear: each generation struggles with savings, just in different ways. Gen X and Boomers save too little relative to their wealth, while Gen Z earns and spends at breakneck speed, leaving little cushion behind.

Source: Bank of America Institute, 2025

This chart illustrates the paradox that, while Gen Z spends nearly double what they save, Gen X and Boomers – though wealthier – still under-save relative to their income.

Digital Experience = Banking Experience

Today, digital is the brand. Consumers judge whether to trust a financial institution not by its branch count, but by its mobile and online experience. According to the Alkami / Center for Generational Kinetics “Generational Trends in Digital Banking Study,” 2025:

• 70% of digital banking users say the quality of digital experience signals how much their financial institution cares about them.
• 62% of Millennials say they’d switch providers for a better digital experience.
• Across all generations, the most sought-after new products are savings and checking accounts, highlighting that deposit primacy may still be up for grabs.

For banks, this means top-of-wallet is earned at the point of digital onboarding and ongoing engagement.

As Cornerstone notes, the next-gen digital banking platform must integrate AI-driven nudges, automate savings behaviors, and deliver financial performance insights that consumers increasingly expect.

Strategies to Recapture High-Value Deposits

Here’s how financial institutions can meaningfully engage both Gen X/Boomers and younger cohorts.

1. High-Yield Savings with Digital Engagement
   Merge security with smarter, personalized savings tools – round-ups, auto-increases, and deposit reminders that fit into existing financial routines.
2. Behavioral Insights & Personalization
   Use platform intelligence to highlight missed opportunities: “Your peers with similar balances are saving 15%, while you’re at 8%. Here’s how to close the gap.”
3. Education and Transparency
   Offer content that translates financial jargon into clear, practical steps. For Gen X, retirement readiness tools. For Gen Z, budgeting and short-term savings boosters.
4. Proactive Digital Nudges
   With next-gen platforms, nudges can be delivered at the right time: after a large deposit, following a pay raise, or when rates shift.

Financial institutions that combine modern digital banking capabilities with targeted, generational insights will be the ones to stem deposit leakage and capture the savings of tomorrow.

Because the money isn’t disappearing. It’s just moving. And with the right platform and strategy, it can be moving back to you.