38% Gen Z adults suffering from 'midlife crisis', stuck in 'vicious cycle' of financial, job stress
For many in Generation Z, the once-anticipated milestones of adulthood—independence, careers, and self-sufficiency—have become sources of stress and disillusionment. Research shows that 38% of Gen Z adults, those under 27, report experiencing what they term a “midlife crisis,” driven by financial instability, mental health challenges, and career uncertainties.
A study by Vitality highlights the significant mental health struggles faced by young professionals, who reportedly miss the equivalent of one workday per week due to related issues. Additionally, Gen Z workers are 224% more likely to experience depression compared to older generations, underscoring a stark generational gap in mental well-being.
While some may attribute these difficulties to a lack of resilience, experts argue the underlying causes stem from broader economic challenges. A survey by Arta found that 30% of Gen Z respondents identified financial issues as their primary source of stress. Millennials, aged 28 to 43, expressed similar concerns, with 28% citing money as their greatest worry.
Economic pressures, including rising living costs, stagnant wages, and market volatility, have made traditional milestones such as homeownership and starting families increasingly out of reach. For many, financial stability symbolizes control over their lives, and its absence has deeply impacted their outlook on the future.
Other sources of stress compound the problem. Mental health challenges account for 25% of Gen Z's reported stress, while 23% stems from career struggles. These overlapping pressures have contributed to a growing sense of crisis among the generation.
Faced with these challenges, some Gen Z individuals have turned to “doom-spending”—impulsive purchases of non-essential items like clothes, electronics, and entertainment—as a way to escape their stresses temporarily. However, experts caution that such habits often worsen financial anxiety, perpetuating a harmful cycle.
Despite the difficulties, there is hope for solutions. Financial advocate Samita Malik of Arta emphasized that the issue extends beyond money itself to the sense of control it represents. She noted how soaring asset prices and misleading financial advice on social media exacerbate Gen Z’s anxiety.
Malik called on older generations to offer practical support, saying, “The key to addressing this crisis is to listen to their concerns and provide clear, actionable financial advice.” She believes that equipping young people with the right tools and guidance can help them build a stable foundation and achieve lasting personal and financial growth.