Rising Financial Insecurity Among Gen Z Signals Shift In Career Priorities

Almost half of India's millennials and Gen Z claim that they do not feel financially secure, with the increasing cost of living still pinching family budgets. Financial insecurity has only intensified since last year, as stated by Deloitte's 2025 Gen Z and Millennial Survey, to influence the way young people work, spend money and prepare for the future.

The survey, which gathered answers from close to 23,500 individuals in 44 nations, indicates that 48 per cent of Gen Zs and 46 per cent of millennials are financially insecure. That is a dramatic spike from 2024 when just 30 per cent of Gen Zs and 32 per cent of millennials indicated the same. More than half of them are now living from paycheque to paycheque, and numerous others are unable to cover monthly bills.

For the fourth consecutive year, cost of living is the issue most of concern to both age groups. Other matters such as unemployment, mental health, and environmental concerns are of lesser concern. For Indian respondents, inflation, flat salaries, and high costs of essentials such as food, rent and transport add to the pressure.

Financial Hardship Affects Well-Being 

Financial anxiety is weighing on emotional health. Around 36 per cent of Gen Zs and 39 per cent of millennials reported feeling happy about their earnings in the last year. More than 80 per cent reported their everyday money worries and concern for their future are making them anxious.

Young adults who are actually feeling financially secure are a lot more likely to be content. 60 per cent of financially secure Gen Z and 68 per cent of financially secure millennials said that they were happy with their lives. However, among those who feel financially insecure, happiness falls dramatically to only 28 per cent for Gen Zs and 31 per cent for millennials.

Side Hustles And Career Changes

To cope with increasing costs, a large number of young Indians are opting for part-time jobs. Nearly one out of three respondents reported having a secondary job in addition to their primary job. While additional income is the primary motivation, some also reported doing it for learning new skills, to pursue passion or do something for the benefit of society.

Career changes are also on the rise. Almost one-third of Gen Zs and 17 per cent of millennials intend to change employers over the next two years. Their motivations are more than merely salary. A lot stated that they wanted to work in roles with greater work-life balance, greater flexibility, opportunities to advance, and a sense of meaning. For increasing numbers of young professionals, salaries alone are insufficient to retain employment.

The survey reveals that 44 per cent of Gen Zs and 45 per cent of millennials have already quit jobs that were not purposeful. In a few instances, individuals are even turning down job opportunities or projects that contravene their values.

The Quest For The Perfect Balance

What young workers seek is a combination of money, meaning and well-being. This "trifecta," as Deloitte terms it, is hard to come by but essential to long-term job satisfaction. Those who feel connected to their employer's values and are doing work that gives them meaning are also more likely to report they are happy.

For instance, 52 per cent of Gen Zs and 59 per cent of millennials who indicate that the values of their organisation align with their own indicate they are happy. Conversely, just 31 per cent of Gen Zs and 34 per cent of millennials who perceive a mismatch reported the same. The same patterns emerge when examining the scope of development or how much a workplace cares about mental health.

Prosperity On Paper Does Not Mean Comfort

Interestingly, however, some evidence indicates that Gen Zs and millennials are potentially richer than previous generations at this age. In the US, for example, millennials' net value has increased four times in five years, and Gen Z is likely to be the richest generation ever. However, this wealth tends to be invested in illiquid assets such as property and retirement savings that are not directly useful for everyday spending.

This discrepancy between anticipated affluence and real financial strain is termed "phantom wealth." Even financially comfortable individuals continue to be concerned about everyday expenses. Almost one-third of financially comfortable respondents indicated that the cost of living was a leading concern. 

What Employers Can Do

The research indicates that employers have to do something to facilitate the financial welfare of young workers. Providing competitive wages and benefits is part of the answer but not the complete solution. Additional measures involve granting flexible working schedules, encouraging mental well-being, facilitating career development, and providing financial literacy.

Mentorship, job rotation, learning opportunities and even straightforward measures such as rewarding employee efforts can help significantly to alleviate stress and enhance engagement. There isn't necessarily a one-size-fits-all answer—what's essential is knowing what employees appreciate and assisting them in accomplishing financial and personal objectives.

The message of this year's survey is unequivocal: to Gen Z and millennials, financial security is not merely a monetary figure. It is the bedrock of their happiness, health, and hope for the future.