As they grow into their careers, the Gen Z generation is racking up their income.
A report from research, training, and advisory firm Gen Z Planet found that the youngest working generation’s income has reached $1.1 trillion, including earnings from jobs, parental support for discretionary spending, and income from side-hustles and part-time gigs.
After taxes, Gen Zers have $950 billion—2.5 times what they initially had in 2021.
“With more Gen Zers in the workforce, it’s no surprise this figure is growing fast,” said Hana Ben-Shabat, founder of Gen Z Planet.
Still, this number only tells part of the story, Ben-Shabat adds.
Even with higher earnings, inflation, high mortgage rates, and debt continue to eat away at their disposable income, Gen Z Planet’s report finds. According to the report, 42% of Gen Z adults continue to live with their parents, with rising home prices, inflation, and student loan debt contributing to their financial anxiety.
Yet, Gen Zers are taking action to achieve financial security. The report adds that more workers in this generation are choosing to save and invest in the stock market, cryptocurrencies, and other digital assets. Others say they’ve taken an early start in planning for retirement.
Research from The Standard last year shows that Gen Zers are more financially practical than older generations. A greater number of this generation are having financial conversations with family and friends and are highly focused on having enough savings for the long-term. Another 79% say their top financial goal is saving, while nearly half worried about whether they’ll have enough income in retirement.
This group could benefit from the guidance of a financial professional, Gen Z Planet reports. While most rely on family, friends and social media influencers for financial advice, 28% say they are seeking guidance from traditional financial institutions and/or professional advisors.
Gen Z Planet’s report is based on an analysis of employment, earnings, and population data published by the U.S. Bureau of Labor Statistics (BLS) and includes a sample of 1,000 Gen Z adults to access spending and savings behavior.
SEE ALSO:
Gen Z is Focused on Saving—But the Struggle is Real
Gen Z and Millennials Struggle Most with Financial Confidence
Gen Z Foresee an ‘Untraditional’ Retirement
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
