For many members of Generation Z, the anticipated joys of adulthood—independence, careers, and a life of their own—have morphed into an overwhelming reality. According to recent research, 38% of Gen Z adults, aged under 27, reported experiencing what they describe as a “midlife crisis,” driven by financial instability, mental health issues, and career uncertainty.
A report by Vitality revealed that young professionals are significantly impacted by mental health struggles, missing the equivalent of one workday per week due to related issues. Furthermore, Gen Z workers were found to be 224% more likely to experience depression compared to older colleagues, highlighting a generational disparity in mental well-being.
While some might dismiss Gen Z's struggles as a product of laziness or an inability to cope, experts argue that the roots lie in the current economic climate. According to a survey conducted by Arta, a staggering 30% of Gen Z respondents identified financial issues as their primary source of stress. Millennials, aged 28 to 43, echoed similar concerns, with 28% citing money as their biggest challenge.
The rising cost of living, economic volatility, and stagnant wages have further compounded financial stress, making milestones such as buying a home or starting a family increasingly unattainable. For many, money represents not just stability but control, and its absence is reshaping their outlook on the future.
Beyond financial difficulties, other stressors also weigh heavily on Gen Z. Mental health challenges accounted for 25% of their reported stress, while 23% cited career struggles. Together, these factors have contributed to a growing sense of crisis among the younger generation.
Faced with mounting pressures, many Gen Z individuals have turned to “doom-spending” as a form of escapism. This phenomenon involves impulsive shopping for non-essentials such as clothes, electronics, and entertainment to momentarily distract from real-world problems. However, experts warn that such habits often exacerbate financial stress, creating a vicious cycle.
Despite these challenges, experts like Samita Malik, a financial advocate at Arta, believe there is hope. Malik emphasised that the issue extends beyond money itself to the sense of agency it provides. She pointed to skyrocketing asset prices and misleading advice on social media as significant contributors to Gen Z's anxiety.
Malik urged older generations to step in with practical support. “The key to addressing this crisis is to listen to their concerns and provide clear, actionable financial advice,” she said. Empowering young people with tools to establish a solid foundation could help them achieve long-term stability and personal growth.
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