Gen Z are dipping into their retirements, skipping meals and selling their belongings just to get by

A 2025 Employee Financial Wellness report from Payroll Integrations found that while 38% of workers across all age groups have withdrawn from their retirement accounts, Gen Z leads the pack. Nearly half of young adults have already dipped into their retirement funds, compared to 31% of millennials. Both boomers and Gen X came in at 41%.

The withdrawals aren’t about luxury purchases — they’re mostly about survival. Across generations, 37% of early withdrawals went toward covering emergencies, but for Gen Z, the top reason was debt repayment. Forty-two percent of young adults who tapped their savings did so to pay off debt, far higher than 6% of millennials, 17% of Gen X, and none among boomers.

A separate Redfin survey paints an equally stark picture: 22% of Gen Z renters said they’ve skipped meals to afford rent, another 22% sold personal items, and 19% delayed medical care.

While Gen Z contributes to retirement plans more actively than older generations, they face sharper financial strain. High housing costs, student loans, and credit card debt have made balancing budgets nearly impossible. Empower reports that Gen Z workers pay an average of $526 per month toward student loans — nearly double the overall average of $284. A Newsweek poll found that Gen Zers carry more than $94,000 in personal debt, compared with $60,000 for millennials and $53,000 for Gen X.