The generation that’s spending on the latest TikTok shop splurge or limited edition Labubu is the same one that’s also skipping meals and dipping into their retirement accounts just to survive.
A new report from Payroll Integrations 2025 Employee Financial Wellness found that while 38% of employees across all generations have withdrawn money from their retirement accounts, Gen Z did the most. Nearly half of the young adults have already dipped into their retirement funds, compared to 31% of millennials. Boomers and Gen X were tied at 41%.
More surprisingly, withdrawals were not about splurging on the latest concert, they’re doing it to escape their looming debt. Among all generations, 37% of early withdrawals went toward unexpected emergencies. But for Gen Z, the biggest driver was paying off their debt: 42% who tapped into their savings did so to pay it off. By comparison, just 6% of Millennials, 17% of Gen X and 0% of Boomers resort to this.
And it’s not just savings they’re draining. A separate survey from Redfin found that Gen Z is skipping meals and putting off doctor’s visits just to pay their rent. More than one in five (22%) of young renters report skipping meals completely to make their monthly payments, 22% have sold their belongings, and 19% have delayed medical treatments.
