Gen Z and Millennials Increasingly Believe Inheritance Matters More Than Hard Work: Report

A new report indicates a growing sentiment among younger Australians that inherited wealth is more significant than personal effort, reflecting increasing financial anxieties and generational disparities.

Recent data shows that 55 percent of Gen Z and 49 percent of Millennials believe what one inherits is more important than how hard they work, a shift from previous generations. This comes as wages for those under 30 have stagnated since the Global Financial Crisis, while costs for higher education have risen by 30 percent in the last decade, according to the e61 Institute’s report, Will young Australians be better off than past generations?. This financial pressure is contributing to a sense of pessimism about future economic prospects.

Despite these concerns, the report highlights several positive attributes of Gen Z, including higher levels of education, increased workforce participation, and a greater emphasis on work-life balance compared to previous generations like Millennials, who experienced record rates of workplace burnout. Furthermore, younger Australians are demonstrating financial savvy through earlier and more frequent investing, leveraging technology and readily available information. You can find more information about financial literacy resources at MoneySmart.

While facing unique challenges, the e61 Institute projects that Gen Z is still on track to earn more over their lifetime than their parents, albeit at an older age and through a combination of wages, investments, housing wealth, and inheritances. Officials stated that continued monitoring of wage growth and cost of living pressures will be crucial to ensuring future economic equity.