The Age at Which Gen Z, Millennials and Boomers Feel Financially Behind — and Why They're All Right
Feeling financially behind isn't just a Gen Z problem.
Most people can point to a moment when they looked around and thought, “I should be further along by now.”
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For Gen Z, it might be landing that first real job. Millennials often feel squeezed between today's bills and tomorrow's goals. Boomers may wonder whether they've saved enough for retirement.
While the pressure points change with age, experts say one thing stays surprisingly consistent: the feeling of being financially behind.
Gen Z Often Feels Behind in Their 20s
Many Gen Z adults are entering the workforce at a time when rent, student debt and other living expenses can consume a large share of an early-career paycheck.
At the same time, social media can make it seem as though everyone else is already buying homes, traveling or building wealth.
"Gen Z often feels behind when they cannot achieve financial independence as quickly as they expected," said Matt Hasan, an economist and CEO of aiRESULTS.
The pressure can be especially intense because these are often the years when people make their first major financial decisions, from signing a lease to opening a retirement account.
According to a FINRA study, 33% of Gen Z respondents reported having a retirement account, suggesting that many are already taking steps toward long-term financial security even if they don't always feel ahead.
Millennials Often Feel Behind in Their 30s and 40s
Millennials are often balancing multiple financial priorities at once.
These can be the years of buying a home, raising children and saving for retirement, all while managing the rising costs of everyday expenses. Some are also helping aging parents, creating competing demands on their time and money.
A joint Beyond Finance and Operation Hope “Rethinking Money” survey found that 57% of Gen Z and millennial respondents feel their generation was set up for financial failure. Another 71% said wealth-building opportunities are becoming less achievable.
“Many people have lost trust in a system that was supposed to work for them, and with it, they’ve lost trust in themselves and their sense of what’s possible,” said Erika Rasure, chief financial wellness advisor at Beyond Finance.
She added, “The reality is, financial conditions have changed faster than the rules.”
Boomers Often Feel Behind Near Retirement
Retirement can bring a different set of financial worries.
Instead of focusing on building wealth, many boomers are thinking about whether they've saved enough to maintain their lifestyles, cover healthcare expenses and handle unexpected costs in the years ahead.
“Boomers tend to feel behind when they realize retirement may not provide the lifestyle or financial security they had envisioned,” Hasan said.
Market swings can add to those concerns, particularly for people who are already retired or planning to retire soon. At the same time, many worry about outliving their savings.
According to FINRA, 68% of boomers reported having a retirement account, the highest share among the generations studied. Even so, having retirement savings and feeling fully prepared for retirement are not always the same thing.
Perception vs. Reality
Feeling financially behind is common across generations. However, perception and reality tell different stories.
Research from Stanford University's Sightlines Project found that younger and older Americans generally perform better on several financial measures than people the same age did two decades ago.
For example, they’re more likely to invest in retirement accounts, store emergency savings, have health insurance, and are less financially fragile. However, experts say many people judge their finances against other people's highlight reels.
“The metric people overemphasize is net worth relative to peers,” Hasan said. “Social comparison is a poor measure of financial success.”
The Bottom Line
Feeling financially behind can be a useful reality check, but not if it's based on someone else's timeline.
A Gen Z worker comparing themselves to a homeowner, a millennial comparing themselves to their parents, or a boomer comparing themselves to an ideal retirement target may miss the progress they've already made.
The better question may be whether today's financial decisions are creating more options and stability than they did a year ago.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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