Unusual Whales

Gen Xers believe they need a net worth of $5,295,072 to be successful, Gen Zers estimate that number is at $9,469,847

Unusual Whales -

Gen Z Sets Higher Wealth Goals as Economic Challenges Mount

As inflation persists, the housing market remains difficult, and wealth inequality grows, young adults are reassessing their financial future—and realizing they’ll need significantly more money to navigate an increasingly volatile economy.

That’s why Gen Z believes they need nearly double the net worth of Gen X, the generation typically considered their parents. According to a survey by financial services firm Empower, Gen Xers estimate they need $5,295,072 to be financially successful, while Gen Zers peg that number at $9,469,847.

"Younger generations are doing the math and betting on needing more money to reach a future state of financial success," says Rebecca Rickert, head of communications at Empower, in an interview with Fortune.

The wealth expectations decrease with age:

  • Millennials believe they’ll need $5,638,205
  • Boomers set their goal at $1,049,172

A similar trend emerges when defining a "successful income." Gen Zers consider an annual salary of $587,797 ideal, compared to:

  • $180,865 for Millennials
  • $212,321 for Gen Xers
  • $99,874 for Boomers

Gen Z: A Financially Anxious Generation

Still early in their careers and often earning lower salaries than older workers, Gen Zers have become the most financially anxious generation. Their sense of instability is shaped by an economy marked by major disruptions.

"Gen Z is coming up in an era marked by some major economic disruptions, from the pandemic to some of the highest inflation rates in decades, student loan debt, and a challenging housing market," Rickert explains.

For today’s young adults, milestones like homeownership, raising children, and retiring comfortably are becoming increasingly expensive. A Pew Research Center study found that young adults are significantly less likely than those over 50 to believe in the American Dream.

Gen X: Struggling to Fund Retirement

Despite estimating they need $5 million for financial security, Gen Xers are facing retirement challenges as longer lifespans stretch their savings thin.

Many in this generation struggle to save enough, especially as they age into a workforce that no longer offers the same pension benefits that Boomers enjoyed, writes Tiffani Potestam, head of distribution at Voya Investment Management, for Fortune.

With retirement savings falling short and economic uncertainty growing, both Gen X and Gen Z are being forced to rethink what financial success truly means.