Younger workers are grappling with persistent financial pressures that are altering their timelines for saving, investing, and major life events, according to Deloitte's 2026 Gen Z and Millennial Survey. The report, which polled thousands of respondents across multiple countries, underscores the challenges facing advisors who serve these cohorts.
Cost of living topped the list of worries for the fifth consecutive year, cited by 38% of Gen Z and 42% of millennial respondents as their single greatest concern. Nearly half of all participants reported living paycheck to paycheck, though that figure edged down from 52% in the prior year. A third of each generation said they struggle to cover basic monthly expenses.
Homeownership remains out of reach for many: 51% of Gen Z and 40% of millennials indicated they simply cannot afford to buy a house. Two-thirds of both groups said housing availability and affordability directly influence their career decisions, including where they are willing to work. More than half of respondents have postponed major life milestones such as marriage, starting a family, launching a business, or continuing education due to their financial situation.
Despite these headwinds, optimism is rising. Fifty-three percent of Gen Z expect their personal finances to improve over the next 12 months, up from 49% a year ago. Among millennials, that optimism climbed to 45% from 41% in 2025. Elizabeth Faber, Deloitte Global Chief People and Purpose Officer, noted that these generations are adapting with resilience, moving forward thoughtfully and on their own terms.
The survey also sheds light on career ambitions. Only 6% of respondents in either generation said reaching a senior leadership position is their primary career goal; most prefer steady, manageable progress. Roughly one in five would accept a lateral move or step down in seniority to gain long-term experience. Half of Gen Z and 49% of millennials cited stress and burnout as reasons leadership is not a priority, with similar shares pointing to excessive responsibility and work-life balance concerns.
However, a substantial majority—76% of Gen Z and 67% of millennials—said they do intend to pursue senior or executive roles at some point, but not immediately. Conditions they are waiting for include better pay, flexible working arrangements, and clearer career paths within their organizations. This cautious approach has implications for advisors helping clients plan for long-term income and wealth accumulation.
Artificial intelligence is reshaping how younger workers approach their careers and finances. Three-quarters of Gen Z and millennials now use AI tools in their daily work, up sharply from about 57% a year ago. Many leverage AI not only for efficiency but also for career development, financial stress management, and planning decisions. Entry-level workers are particularly optimistic: more than a quarter said AI allows them to gain experience faster, focus on more valuable work, and accelerate their growth prospects.
For financial advisors, these trends suggest a need to adapt engagement strategies. Younger clients may delay traditional wealth-building milestones, but they remain open to advice that addresses immediate cash-flow challenges and leverages technology. As noted in a recent Fidelity study, many first-time investors are entering the market through employer stock plans, reshaping retirement saving patterns. Similarly, the UBS survey found that workers still value human advice, even as digital tools proliferate.
Advisors should also monitor regulatory developments that could affect younger clients. The SEC's proposed semi-annual reporting may enhance transparency, while the Trump executive order creating a retirement portal for uncovered workers could expand access to savings vehicles. As these changes unfold, understanding the financial behaviors of Gen Z and millennials will be critical for advisors seeking to build lasting client relationships.
