How are Gen Zers navigating their financial challenges? 

A new Advisor Authority study, powered by the Nationwide Retirement Institute, highlights the financial challenges that Gen Z investors are facing and the unexpected spending behaviors and digital strategies they’re using to navigate them.

The challenges faced by Gen Z investors are many and varied. As pointed out by Kristi Rodriguez, leader of the Nationwide Retirement Institute and financial services marketing for Nationwide, although they are just starting to evaluate their retirement prospects, many are already feeling pessimistic about their ability to retire – a sentiment fueled by today’s economic environment and the unique financial pressures they feel.

Monthly bills, debt cited by Gen Zers

Four in ten (40%) said they are worried about their ability to afford monthly bills and nearly half (46%) cited paying down loans and debts, like student loans, credit cards, mortgages and car payments, as a top financial commitment over the next year. Additionally, 77% of Gen Zers are concerned about the possibility of an economic recession over the next 12 months.

“As the leader of the Nationwide Retirement Institute and a mother of two Gen Z daughters, I see both the promise and the pressure this generation is facing,” Rodriguez said.

Nearly one in three also use digital wallets (Apple Pay or Google Pay, Rodriguez added, and 30% use peer payment platforms (Venmo or Zelle) to invest, save or store their money. They're engaged and eager to build wealth on their own terms.

“However,” Rodriguez said, “our research shows a real gap; while many are   saving, they're not always taking proactive steps to prepare for economic volatility or a potential recession. That is not due to a lack of concern – it's often a lack of confidence and guidance. Four in ten (40%) said they do not have a strategy in place to help protect their assets against market risk.”

Many Gen Zers are also not using financial advisors. In explaining this behavior, Rodriguez said that as a generation raised on modern technology, many Gen Zers are turning to digital content instead of financial advisors for professional guidance. “A quarter (24%) of Gen Zers who don’t have a financial advisor told us they get financial advice from online financial influencers and social media platforms,” Rodriguez said.

“While it’s great to see Gen Zers seeking out education on financial topics, it’s very important they make sure they are working with trustworthy sources. Gen Z wants to be financially resilient, and this is a financial professional’s opportunity to meet them where they are and help them turn awareness into action,” she said.

The Nationwide research also shows that although many Gen Z investors feel behind on their retirement savings, they're not necessarily taking steps to catch up, largely because retirement still feels far off and immediate financial pressures and priorities are taking center stage, according to Rodriguez.

“Discretionary spend is a big factor,” she explained. “This generation is shaped by economic uncertainty and social media influence, and many are leaning into a 'YOLO' – you only live once – mindset. That can make saving for something 30-40 years down the road feel less urgent, especially when day-to-day costs and lifestyle aspirations feel more real and immediate. As a mother of two Gen Z daughters, I am always stressing the importance of balance – enjoying life today while planning for tomorrow. Building that long-term view early can help them take full advantage of time and the power of compound interest.”

Connecting with Gen Z

So, what are some of the steps that advisors can take to connect with Gen Zers, help them navigate their financial challenges and move more closely toward their financial goals?

“To really connect with this generation of savers, advisors are going to need to lead with empathy,” Rodriguez said. “They need to listen to understand, considering Gen Zers’ unique point of view when recommending solutions.”

“Most importantly,” Rodriguez said, “advisors are going to need to help this generation recognize the longevity challenges they will likely face. With Gen Z likely to live longer than previous generations, financial advisors can help them think beyond traditional timelines and start planning now for a future that could span multiple decades in retirement. Help them prioritize long-term financial security vs focusing on near-term obligations.”

Nationwide’s tenth annual Advisor Authority study, powered by the Nationwide Retirement Institute, explores critical issues advisors are confronting, financial professionals and individual investors and the innovative techniques that they need to succeed in today’s complex market. The Harris Poll, on behalf of Nationwide, conducted an online survey in the U. S. among 610 advisors and financial professionals and 2,524 investors ages 18+ with investable assets of $10K+, January 6-25, 2025. Among the investors, there were 349 Gen Z investors (aged 18-28).
The Nationwide Retirement Institute offers additional resources to help advisors facilitate conversations with clients.

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