Lindzi Caputo
Generation X are sitting on far more wealth than they realise and are in a strong position to take control of their financial future, but few are doing so strategically, according to wealth management partner at HLB Mann Judd Sydney, Lindzi Caputo.
Caputo said Gen X, often overlooked in the generational wealth debate, are entering a critical financial stage.
“Many Gen Xers are asset-rich but strategy-poor. They’ve benefited from compulsory superannuation and rising property prices, yet few have a structured plan to make that wealth work for them,” Caputo said.
“With retirement on the horizon, Gen X needs to shift from autopilot to active planning.
“For many, financial independence or early retirement could be a realistic goal, but it requires more than relying on property and superannuation. Now is the time to plan intentionally.”
Caputo said that while the family home often represents the bulk of wealth for this age group, it’s important to think beyond real estate.
“If the mortgage is less than 50 per cent of the property’s value, that’s often the tipping point where it makes sense to start looking at other investment opportunities. A more balanced portfolio with liquid assets such as shares or managed funds can provide both growth and flexibility.”
While superannuation remains an important strategy, Caputo said those in their 40s and early 50s may still be many years away from accessing it.
“Someone in their late 40s may still be 15 to 20 years from retirement, and that’s why it’s important to also consider investments that are accessible and can be actively managed outside of super,” Caputo said.
“Debt can be a powerful tool, but it needs to be managed prudently. Borrowing to invest in liquid assets can accelerate wealth creation, provided repayments are sustainable and the asset can be easily sold if needed. And ideally, that debt should be cleared before retirement.”
She says high-income earners within Gen X may also have significant free cash flow that could be put to more productive use.
“We often work with clients to set up regular monthly investment contributions. Over time, these can build substantial portfolios grow overall wealth and provide income to support family goals, such as school fees or travel,” Caputo said.
“If your goal is to generate $200,000 a year from investments, using a conservative 5 per cent return, you’d need around $4 million in investable assets. Once you reach that, work becomes a choice, not a necessity.”
Caputo also encouraged Gen X to turn their attention to inheritance and legacy planning.
“Framing inheritance discussions as conversations about legacy rather than loss helps families align their values and intentions. Structures like testamentary trusts can protect wealth and ensure it benefits future generations,” Caputo said.
“When these conversations happen in advance, with powers of attorney and enduring guardianships in place, it reduces strain on families and ensures smoother transitions. Once an inheritance is received, paying down non-deductible debt and maximising super contributions should be the first priorities.”
Caputo said while Gen X may not have had the same economic tailwinds as the Baby Boomers, many are in strong positions to retire comfortably if they plan effectively.
“With strategic thinking, diversification, and open family conversations, this generation can create a retirement that is both secure and fulfilling. But the key is to start now, because when it comes to financial independence, time and intention are everything.”
