Why most Gen Z workers doubt they’ll ever retire

Financial challenges have a wide-reaching impact, and in a recent study, Gen Z reported their social lives (72%), mental health (67%) and physical health (62%) have suffered due to money constraints in the last year.

The survey of 2,000 Gen Z hourly workers also found that more than a third (36%) are working multiple jobs, and just about half (47%) have an hour or less of free time each day.

Despite their grind, more than two-thirds of Gen Z workers (68%) doubt they’ll ever be able to fully retire.

And those who are confident they’ll be able to retire are working two jobs, on average, while those who are uncertain about retiring work just one.

This poses the question: Will Gen Z actually need to work two jobs to have enough money to retire?

The survey was conducted by Talker Research on behalf of DailyPay to investigate Gen Z’s financial health and the ways money difficulties have impacted their overall well-being, work and retirement plans.

According to the findings, most Gen Z (77%) think they’ll need to work past the typical retirement age to make ends meet: Half (49%) believe they’ll need to work full-time, and 29% anticipate they’ll need to work at least part-time.

And while, holistically, 67% of Gen Z hourly workers are still proactively saving for retirement, only a small group of those who don’t think they’ll retire are still saving for it just in case (44%), putting this significant group of people in a precarious financial position.

Looking at respondents' work/life balance, the majority of Gen Z respondents (56%) went so far as to say they don’t feel like they have lives outside of their jobs.

More than half (56%) said their dating lives were negatively impacted by financial challenges in 2025, and nearly one in two single respondents (48%) said they went on fewer dates than they’d hoped to in 2025 because of tight budgets.

Respondents also said they eat mostly home-cooked meals (44%), shop at discount stores (38%), opt to do free activities for fun (36%) and even cut their own hair (26%) to limit their spending.

Interestingly, Gen Z also reported that they’re financially responsible for one other person, on average, along with themselves.

Considering this, some of their more intense money-saving habits make a bit more sense in context. These include keeping the thermostat very low in the winter and high in the summer (18%), taking short or cold showers (15%) and air-drying their clothes instead of using a dryer (13%).

2025 was an incredibly difficult financial year for many, if not most, and when Gen Zers were asked about the most extreme things they did in the last year to save money, the responses put things into perspective.

Some respondents said they cut back on showering to reduce their water bills, while others turned off their hot water or electricity, did laundry in the bathtub and stopped buying necessities like groceries and toilet paper.

“Gen Z is facing a financial crisis that is actively undermining their health, their work performance and their hope for retirement,” said Andrew Brandman, chief operating officer at DailyPay. “The outdated pay cycle is misaligned with the younger generation’s modern financial needs and, for many, is negatively impacting their stability and well-being.”

In the study, the majority of Gen Z hourly workers (63%) reported their work performance has taken a hit in the last year because of their money worries.

More than a third (35%) also admitted they accepted their current jobs because they were desperate for work and many (31%) ended up in their current positions because they were attracted to how frequently they’d be paid (e.g. daily, weekly), instead of an attraction to the role itself.

“On-Demand Pay is no longer a niche perk; for many, it’s an essential benefit that restores control over pay and provides financial security to the employee,” said Brandman. “Empowering workers with real-time access to the pay they’ve already earned can be one of the most effective ways to help Gen Z stabilize their finances and thrive.”

Only 15% of respondents have access to their pay daily (e.g. on-demand pay), and for those who do not have on-demand pay, most (63%) want it.

With on-demand pay, Gen Z hourly workers said they’d be more financially stable (30%) and would be able to put money into savings (28%).

They also feel that with on-demand pay, they'd be more productive and engaged at work (23%) and their social lives (22%) and mental health (27%) would improve.

GEN Z’S TOP MONEY SAVING HACKS

• Eating mostly home-cooked meals  (44%)
• Shopping at discount stores (38%)
• Using coupon apps, cashback sites and waiting for sales  (36%)
• Doing free activities for fun (36%)
• Meal prepping (31%)
• Buying in bulk (30%)
• Cutting my own hair (26%)
• Buying secondhand things (25%)
• Buying generic brands only (24%)
• DIY home repairs (21%)
• DIY car maintenance (19%)
• Keeping the thermostat very low in the cold months and higher during the warm months (18%)
• Using public transit (17%)
• Carpooling with others when possible (16%)
• Biking or walking instead of driving (15%)
• Taking shorter or cold showers (15%)
• Air-drying clothes instead of using a dryer (13%)

Research methodology:

Talker Research surveyed 2,000 Gen Z workers who are paid hourly who have access to the internet; the survey was commissioned by DailyPay and administered and conducted online by Talker Research between Nov. 21 and Dec. 1, 2025. A link to the questionnaire can be found here.

To view the complete methodology as part of AAPOR’s Transparency Initiative, please visit the Talker Research Process and Methodology page.