Half of young workers are living paycheck to paycheck, reshaping how they save, invest, and plan

Younger workers face challenging financial burdens that raise pointed questions about when, and whether, those clients will be ready to engage with traditional wealth-building strategies.

Deloitte's 2026 Gen Z and Millennial Survey found that cost of living has topped the list of concerns among both groups for the fifth consecutive year, cited by 38% of Gen Zs and 42% of millennials as their single biggest worry.

Nearly half of all respondents say they are living paycheck to paycheck, although that figure has nudged down from 52% last year. A third of each group is struggling to cover basic living expenses each month, while homeownership is out of reach for many: (51% of Gen Zs and 40% of millennials say they simply cannot afford to buy a house) and two thirds of each cohort says that housing availability and affordability directly shapes their career decisions including where they are willing to work.

More than half of respondents say they have postponed major life decisions such as marriage, starting a family, launching a business, or continuing their education, because of their current financial situation.

However, 53% of Gen Zs expect their personal finances to improve over the next 12 months, up from 49% a year ago, and among millennials, that optimism has risen to 45%, from 41% in 2025.

"Gen Zs and millennials are adapting to a world that has demanded resilience early and often. They are moving forward thoughtfully, selectively, and on their own terms," said Elizabeth Faber, Deloitte Global Chief People and Purpose Officer. "How they navigate uncertainty — how they define success, weigh tradeoffs, and engage with employers — will help set the norms that Gen Alphas encounter as they begin entering the workforce in a few years."

Future career and finances

The survey's findings on career ambition add further texture to the financial outlook.

Only 6% of respondents in either generation say reaching a senior leadership position is their primary career goal, with most preferring steady, manageable progress. Roughly one in five say they would willingly take a lateral move or step down in seniority to gain experience they think will serve them better over the long term.

When asked why leadership wasn't a priority, half of Gen Zs and 49% of millennials pointed to stress and burnout, while similar shares cited excessive responsibility and concerns about work-life balance.

The picture isn't uniformly grim. A substantial majority of both generations (76% of Gen Zs and 67% of millennials) say they do intend to pursue senior or executive roles at some point in their careers, just not necessarily right now. The conditions they're waiting for include better pay, flexible working arrangements, and a clearer sense of how to get there within their current organizations.

Artificial intelligence

On artificial intelligence, the data signals a shift with financial implications.

Three quarters of Gen Zs and millennials now use AI tools in their day-to-day work, up sharply from around 57% a year ago, with many using those tools not just to do their jobs more efficiently but as a resource for career development, financial stress management, and planning decisions.

Entry-level workers, for their part, are largely optimistic about what AI means for their career trajectory. More than a quarter say it's allowing them to gain experience more quickly, and similar shares say it's helping them focus on more valuable work and accelerating their growth prospects.

Mental health showed meaningful improvement in this year's data, but stress remains stubbornly tied to money with long-term financial future revealed as the top contributor to anxiety among both generations, followed by worry about family health and welfare, and then day-to-day financial pressures.