Report says 'paycheck-to-paycheck' living Gen Z may become the 'richest generation' by 2035—but they beg to differ

Many young adults in America are familiar with the idea of financial strain in the current economy. Despite working multiple jobs, it is hard for Gen Z to get by and make a living. Saving, buying a house or investing are the tasks they consider a luxury today. However, a report from the Bank of America revealed that this very generation that is struggling to pay bills might become the “richest generation” in a decade. A few expected and unexpected reasons have the potential to turn around the financial trajectory of GenZ completely. However, people of this generation are deeming this reality as a questionable idea.

Many Gen Z adults are having it hard when it comes to work life and earnings. Their incomes are seemingly low, but expenses are off the roof. High rent, crazy costs for essentials and even commuting are causing Gen Zs to live a restricted and worrisome "paycheck-to-paycheck" life, per Fortune. However, there is a possibility this might change in the next few years. The group amassed around $9 trillion two years ago. The magical part is that this number is expected to increase greatly to $36 trillion by 2035 and a solid $74 trillion by 2040, per the publication. With an increasing population, it could make Gen Z the richest and largest generation so far, stated the report.

The main reason is that currently, the younger generation is majorly unemployed. Due to a lack of jobs in the market and several other factors, people are jobless despite being educated. Nevertheless, the report tracked an 8% wage increase, which is expected to increase over time. Younger people will eventually get into full-time, high-paying jobs and can amass quite the income in the years to come, shared the publication. Another major factor is the transfer of generational wealth. Around $84 trillion is expected to be passed on from the older generations, boomers, millennials, etc., to young adults by the year 2045, per a press release by Cerulli Associates. 

With this wealth, they can transform the current economic state and how it functions. With the current spending habits of Gen Z, one can expect a complete transformation, giving them maximum benefit. Moreover, it is expected that this generation will be among the "most disruptive generations to economies, markets and social systems," the report noted. Another notable factor mentioned by Financial Literacy Expert Amanda Frances is “digital fluency,” per The New York Post. “Their digital fluency gives them unprecedented access to wealth-building opportunities through fintech, e-commerce, content creation and AI-driven businesses,” she explained. So, with the significant increase in wages and the generational wealth coming in, Gen Z gets the ball in their court and can decide the course of the economy.  

“Gen Z is positioned to be the wealthiest generation ever — I’d love to see them own this,” Frances remarked. However, when u/sg_plumber reposted it on Reddit, it brought contradictory views. Gen Z, who are mostly struggling to get sufficient pay and maintain a comfortable lifestyle, joined in the discussion with critical opinions. u/ioncloud9 said, "You think there aren’t industries set up to extract all this wealth before you ever touch it?" u/bluefancypants pointed out, "A huge percentage of us Gen Xers don't have much in retirement." u/princeapoo added, "This is a puff piece meant to keep us at ease and thus allowing the tyrants in control to continue doing what they’re doing." u/cctubadoug shared, "It wasn’t that long ago, they were saying that about millennials."

"Boomer money is going to: A) Medicare B) Medicaid C) Long-term care D) Retirement housing. They are taking it with them by living off of it all. Nothing left for anyone else," pointed out u/nachtmuzic. u/Immediate-Plan3444 said, "That means you think Gen X and older millennials are transferring all of their wealth to you. We never got any of it either. Laughs in crying." u/zoidbergin questioned, "Also, even if that wasn’t the case, the timeline doesn’t really track, right? In 10 years, Gen Z will be on average right around 30, and on average, kids in the US are born when their parents are like 27. So, this article seems to imply a majority of Gen Z parents will die in their 60s?"