Over Half Of Millennials And Gen Z Live Paycheck To Paycheck, Reveals Deloitte's Survey

More than 50 per cent of millennial and Gen Z employees report that they will be living paycheck to paycheck in 2025, according to Deloitte's 2025 Gen Zs and Millennials At Work survey. The survey of more than 23,000 people in 44 countries reveals an alarming increase in financial stress among young generations. For most, expenses at the end of each month are challenging, and long-term objectives such as retirement appear too far away.

The survey points out that 48 per cent of Gen Zs and 46 per cent of millennials feel insecure about their finances this year. That is a considerable increase from 30 per cent and 32 per cent, respectively, in 2024. With inflation, the cost of housing, and wages stagnating in many markets, young adults are finding it hard to create a financial cushion.

Financial Stress Is Affecting Mental Well-Being

The financial pressure isn't solely in figures on a bank statement—it's also affecting mental health. The survey finds that less than 6 in 10 Gen Zs and millennials say they have good or very good mental health. About 40 per cent of Gen Zs and 34 per cent of millennials report feeling stressed or anxious most of the time, and money is among their top reasons.

Over 80 per cent of the respondents mentioned both long-term financial stability and everyday spending as primary causes of stress. Most also mentioned work-related issues like over-working and not receiving proper credit as reasons for their bad mental health. But money troubles still reign supreme.

Of those who were financially secure, 60 per cent of Gen Zs and 68 per cent of millennials reported being satisfied with their lives over the last year. Conversely, only 28 per cent of financially insecure Gen Zs and 31 per cent of financially insecure millennials reported the same.

Young Adults Are Taking Control, But Need Support

Even in their economic distress, most young workers are working to get better. They are using financial literacy, side hustles, and upskilling to earn more and save. But the report indicates that a few obstructions still exist—particularly the inflation of the cost of living and the deficiency of employer support for financial wellness.

Gen Zs and millennials were found by the survey to be willing to learn more about personal finance, and they appreciate employers that provide financial education. Personal finance topics such as investing, retirement planning, saving, and budgeting rank high. Having access to these resources within the workplace can ease financial stress and create long-term security.

Purpose And Pay Are Both Priorities

Though younger employees still consider purpose within their work important, increasingly they are placing equal or higher importance on financial security. The Deloitte report states that several respondents have switched employment or rejected positions based on whether they provided sufficient financial support and work-life balance.

This change indicates that money, meaning, and well-being go hand in hand for younger generations. For others, purpose no longer must be from the work itself—it can happen outside of work, if they make enough to support that kind of freedom.

What Employers Can Do

Employers looking to hire and retain Gen Z and millennial talent need to confront financial insecurity directly. Paying competitive wages is just the beginning. Flexible benefits such as healthcare, childcare, and commuter assistance can make a significant impact. Providing access to personal finance tools and education is similarly crucial.

Managers are also instrumental. The report recommends giving managers the authority to act to promote employee well-being, such as having honest discussions about financial pressure, to have a more engaged and productive workforce.

Deloitte's survey reveals that the future generation of workers aren't simply seeking purposeful work—have hope, care, and clear pathways to financial independence in mind. More than half live from paycheck to paycheck, making it the right time to act. Tackling financial issues is not just a matter of ethics but a sound strategy for organisations that want to create a strong, engaged workforce.