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

Older millennials, aged 35 to 44, are the least likely to say they feel “financially well,” according to Bank of America’s 2023 Workplace Benefits Report, which surveyed more than 1,300 employees and 800 employers across the country. A full 80% report feeling stressed out by their financial situations.

Not that other generations are feeling much better. Overall, 42% of workers feel financially well, according to the survey, the lowest rate Bank of America has recorded since it started this survey in 2010. That’s down from 57% in Feb. 2022.

A lot of it comes down to the cost-of-living, according to BofA’s report. Almost seven-in-10 respondents say inflation is outpacing their salary or wage growth.

But inflation doesn’t explain everything. Financial advisors says it makes sense that older millennials are the most financially anxious, as they have come up against some famously challenging economic circ*mstances. As Andrew Herzog, a Texas-based certified financial planner (CFP) at the Watchman Group, lays out, older millennials entered the workforce around the Great Recession and its aftermath, only to bounce around a rocky job market. “Some lost everything, others lost a lot,” Herzog says.

As they aged into their prime working (and spending) years, the COVID-19 pandemic dealt them another blow, causing them to “start over again.” Coupled with staggering student debt, a lot of childcare bills, and soaring housing prices, they can’t seem to catch a break. Even millennials who entered the job market a few years later can’t relate.

“A combination of bad timing, COVID complications, inflation, maybe being squeezed out of buying a home now, all make life difficult for millennials,” says Herzog.

30- and 40-something financial stress is typical

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

“When you are younger, your focus is on getting your start in life, which can include starting your career, getting married, saving for your first home, and starting your family,” says Dwyer. “This was the age where I realized that I really needed to set some big financial goals for myself.”

Many find themselves in caregiving roles, potentially caring for their children (including teenagers) and older relatives. They’re saving for their children’s college, maybe a new home, and are feeling inflation’s sting more acutely than younger workers and older people without as many responsibilities.

The turmoil of the past few years, economic and otherwise, hasn’t helped matters. Workers of all ages have reported rethinking their careers and aspirations in the wake of the pandemic.

“The past few years of challenge and struggle have made them less happy with their jobs and thinking about slowing down,” says Jack Heintzelman, CFP at Boston Wealth. “They realize that a few years of market volatility could really affect them and their retirement goals.”

All of that is happening while this age group starts to approach their prime earning years—their salaries might look healthy on paper, but they haven’t had quite enough time yet at those higher salaries to build up substantial safety nets.

“Younger millennials may not have the experience either to be paid or demand higher wages, but they likely may not have started a family or have parents who are older to the point that they worry about them,” says Daniel Lash, CFP at Virginia-based VLP Financial Advisors.

Couple all of that with, as Dwyer noted, more financial awareness generally, and it’s no surprise that anxieties grow, too. Many thirty- and forty-somethings are balancing all of their responsibilities while also starting to plan out their own retirements.

“As careers progress and salaries increase, it’s tempting not to inflate our lifestyles to match growing income because our society teaches us to do that,” says Ashley Folkes, CFP at Alabama-based Inspired Wealth Solutions. “If not careful, someone can be in a constant perpetuating state of playing catch up. This can create enormous stress, leading to fear of being unprepared for the future.”

‘It’s every man for himself

Of course, all of these points are generalizations; not every statistic applies to every member of every generation equally. But the financial advisors say on the whole, these are the issues their older millennial clients are seeking advice about.

Different generations have different pain points: Only 17% of Gen X feel financially ready to retire, and 59% of Gen Z workers say their financial stress is impacting their productivity, per BofA’s survey. Women are also less comfortable than men, with 38% of women feeling financially well compared to 48% of men.

Dwyer says millennials do have it harder in some respects. Today, “it’s every man for himself,” she says. Pension jobs are a rarity, and the government doesn’t offer much support.

“This is life,” she says. “Some generations get lucky, and some don’t.”