Gen Z is actually richer than any generation before them — but they have the curse of Great Expectations

In a recent report titled "The Kids Are Alright: The Timeless Angst Over Young People and Money," economists Philipp Carlsson-Szlezak, Paul Swartz, and Henry Rubin challenge the notion that Gen Z is struggling financially. According to their findings, Gen Z is actually richer at the same age compared to Millennials, Gen X, or Baby Boomers in previous generations. Despite their financial success, Gen Z feels worse about money than any other generation on record.

The report highlights that Gen Z has the widest generational lead in income since the Baby Boomers. At the age of 28, the oldest Gen Z workers earn a median of $42,000 in constant dollars, which is 25% more than what Millennials made at the same age and 50% more than what Boomers earned. Additionally, when combined with Millennials, the report shows that today's young generation has surpassed previous generations in wealth.

However, Gen Z's sentiment towards money is distinctly different from their financial reality. For the first time on record, the young are more pessimistic than the old about their ability to retire comfortably. A SoFi/YouGov survey of 4,090 U.S. adults found that while 62% of Gen Z and Millennials aspire to retire comfortably, only 46% believe they will actually achieve that goal.

This discrepancy between expectations and reality has led the SoFi report to label Gen Z as "financemaxxing" and "lifemaxxing," indicating that they are focusing on the emotional return on investment of their money rather than just financial returns.