Older millennials are 'in a constant state of catching up', making them the most financially stressed people of any age group (2024)

Older millennials, ages 35 to 44, are the least likely to say they are doing "well financially," according to Bank of America's 2023 Workplace Benefits Report, which surveyed more than 1,300 employees and 800 employers nationwide questioned. As many as 80% report feeling stressed about their financial situation.

Not that other generations are much better off. A total of 42% of employees are doing well financially, the lowest percentage according to the researchBank of Americahas registered since the start of this survey in 2010. That is less than the 57% in February 2022.

According to the BofA report, a big part of that comes down to the cost of living. Nearly seven in 10 respondents say inflation is outpacing their wage or salary growth.

But inflation doesn't explain everything. Financial advisors say it makes sense that older millennials are the most concerned financially, as they've encountered a number of themfamously challenging economic conditions. As Andrew Herzog, a Texas-based certified financial planner (CFP) at the Watchman Group, says, older millennials entered the workforce around the Great Recession and its aftermath, only to find themselves in a shaky job market. “Some lost everything, some lost a lot,” Herzog says.

As they age into their prime working (and spent) years, the COVID-19 pandemic has dealt them another blow. makes them “start over.” Together with the enormous student debts, the many childcare bills and the sky-high house prices,they can't seem to catch a break. Even millennials who entered the labor market a few years later can't agree with that.

“A combination of bad timing, COVID complications, inflation, and perhaps not having to buy a home now all make life difficult for millennials,” Herzog says.

Financial stress between the ages of 30 and 40 is typical

That said, everyone gets a little more stressed in their late 30s and 40s, says Monica Dwyer, CFP at Ohio-based Harvest Financial Advisors.

“When you're younger, your focus is on starting your life, like starting your career, getting married, saving for your first home and starting a family,” says Dwyer. “This was the age where I realized I really needed to set some big financial goals for myself.”

Many find themselves in a caregiving role, where they may care for their children (including teenagers) and older relatives. They are saving for their children's education, perhaps for a new home, and feel the sting of inflation more keenly than younger workers and older people without as much responsibility.

The turmoil of recent yearsfinancial and other, hasn't helped matters.Employees of all ageshas reportedreconsider their careersInhope in the wake of the pandemic.

“The challenge and struggle of recent years has left them less satisfied with their jobs and less thinking about slowing down,” says Jack Heintzelman, CFP at Boston Wealth. “They realize that a few years of market volatility can really impact them and their retirement goals.”

This is all happening as this age group begins to approach their prime earning years; their salaries may look healthy on paper, but they haven't had enough time to build significant safety nets for the higher salaries.

“Younger millennials may not have the experience to get paid or demand higher wages, but they probably don't have families or parents who are older than the point where they care about them,” said Daniel Lash, CFP at Virginia-based VLP. Financial advisors.

Combine all this with, as Dwyer noted, more financial awareness in general, and it's no surprise that fear is also growing. Many people in their thirties and forties are balancing all their responsibilities as they do sostart planning their own retirement.

“As careers progress and salaries rise, it's tempting not to adapt our lifestyles to accommodate growing income because our society teaches us to do so,” says Ashley Folkes, CFP at Alabama-based Inspired Wealth Solutions. “If care is not taken, a person can be constantly playing catch-up. This can cause enormous stress, leading to the fear of not being prepared for the future.”

'It's every man for himself

Of course, all these points are generalizations; not every statistic applies equally to all members of each generation. But financial advisors say these are generally the questions their older millennial clients seek advice on.

Different generations have different pain points: Only 17% of Gen Women also feel less comfortable than men: 38% of women feel financially comfortable, compared to 48% of men.

Dwyer says millennials have it harder in some ways. Nowadays it's "every man for himself," she says. Retirement jobs are a rarity and the government does not provide much support.

“This is life,” she says. “Some generations are lucky, some are not.”