The report also revealed that Gen Z felt the greatest pressure to find an extra job this year,at 56 per cent,compared with Gen X’s 26 per cent or Baby Boomers’ 7 per cent. Gen Z was also the largest group to report enjoying life less than two years ago due to financial pressures (70 per cent),followed by Gen Y (68 per cent).
“The most heavily affected demographic when it comes to cost of living is not the Boomers or the Gen X home owners that you would expect – people with mortgages – the people who are experiencing directly the effect of cash rate increases,” said Finder head of consumer research Graham Cooke.
“But actually,Gen Z and Gen Y,Millennials and those in their early 20s,are the ones reporting[they’re] experiencing the highest financial burden. They’re the ones making the bigger cuts,they’re the ones feeling more pressured to have a second job due to the increased cost of living.”
The biggest factor behind the generation-driven trend was that Baby Boomers and Gen X had likely paid off a significant portion of their mortgages and therefore were in a more comfortable financial position,said Cooke,while Gen Z had been in the workforce for the shortest time and had the least savings,making them more vulnerable to cost of living pressures.
‘That dream of purchasing their own place is starting to now be pushed out further.’
Glen Hare,financial advisory firm Fox&Hare
On average,Generation Z has $13,300 in savings,representing less than half of their Gen Y peers,who have $27,000 saved up. Gen X has $41,400,while Baby Boomers are sitting on $51,300,the report showed.