Panel
Addressing the Financial Headwinds Faced by Gen Z and Millennials | Global Conference 2025
Milken InstituteCheryl Evans, Kahlil Byrd, Catherine Collinson, Alexis Crow, Dorothy Kelly, Sylvia Kwan
- The daily population turning age 65 is projected to peak at approximately 11,200 over the next three years, while advanced economies face declining growth as the global shift from manufacturing to services reduces the total economic output.
- Intergenerational mobility is expected to deteriorate, with lower-income individuals becoming increasingly unlikely to reach the top two income tiers, and the spread between home ownership costs and rent anticipated to remain at record highs due to insurance and maintenance barriers.
- Household debt servicing in the US is expected to remain at roughly 11% of disposable income, yet the US may lag behind nations like China, which maintains a 36% household savings rate to provide economic resilience.
- Gen Z and Millennial households are projected to face prolonged financial recovery from the pandemic, frequent employment setbacks, and reduced retirement security, with over half of Gen Z engaging in side hustles or second jobs.
- Approximately 85% of Gen Z and Millennials may base financial decisions on student loan balances, while policy mismanagement risks defaulting rates rising from 5 million to between 10 and 15 million within three to six months.
- Incorrect student loan policies could hinder the debt-to-wealth transition for nearly 40% of borrowers, prompting calls for private sector interventions targeting 30 million borrowers starting as early as age 30.
- Institutional and geopolitical shifts may necessitate changes in geographical asset allocation and bond strategies, alongside increased distrust of traditional financial services among younger generations who favor social media influencers.
- AI and robotics are set to transform the workforce, with three-quarters of employers implementing these technologies, potentially reducing white-collar roles significantly while creating a lag in workforce development.
- Caregiving responsibilities for aging family members are impacting financial well-being, with eight out of ten caregivers having already adjusted their employment status, often due to unpaid labor that could theoretically add a trillion dollars to global GDP.
- Women remain underrepresented in investing with portfolios heavily weighted in cash, yet they are expected to receive the majority of the largest historical wealth transfer from Baby Boomers, potentially leading to independent financial agency decisions.
- A significant portion of students entering the financial literacy market lack confidence, and many borrowers avoid discussing debt due to shame, though younger generations increasingly prioritize retirement savings over emergency funds.
- Gen Z and Millennials are expected to demonstrate higher job mobility and seek personalized financial solutions aligning with personal values, while also showing openness to non-traditional investments like crypto and private real estate.