Mar 4, 2024
Gen Z has made no secret that they’re bewildered by corporate culture and how they’re not taking home enough cash to withstand the cost-of-living crisis. Just look at all the TikTok videos out there on the subject.
In fact, about 60% of the younger generation said traditional 9-to-5 jobs are “soul-sucking,” according to a recent survey conducted by Qualtrics on behalf of Intuit Credit Karma.
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But 57% of these same respondents also reported subscribing to the FIRE (financial independence, retire early) movement, which involves saving money and building wealth in order to retire before the traditional age of 65.
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Here’s why these young Americans are tired of being burned and how an early retirement could be the solution.
Gen Z has plans to ditch their day jobs
Gen Z’s grievances don’t necessarily mean they’re fed up with the grind in general. For some, it all comes down to a lack of fulfillment in their current jobs, while others said their mental health is suffering from their 9-to-5s.
Minnesotan Andra Berghoff once worked in a marketing role at a health care company where she was paid poorly and did “little to nothing” in the office. She said in a TikTok video that went viral last year, “If I had to do this corporate drone thing for the rest of my life, I would rather clock out eternally.”
Many are also unhappy with their pay — even respondents who earned more than six figures — and are concerned their salaries aren’t keeping up with the cost of living.
However, some of them are considering major lifestyle changes in order to help them leave their jobs faster.
More than 40% of respondents said they’d cut back on non-essential spending, like shopping for non-essential items and dining out, while a third are thinking of working various odd jobs to make ends meet. Nearly a quarter are also considering moving back in with family or friends, while 17% said they could possibly rely on their partner for financial support.
In the meanwhile, 29% of survey respondents admitted to “quiet quitting” — essentially putting in the bare minimum during work hours, setting boundaries and prioritizing their wellbeing.
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Could FIRE be the answer?
Whether they’re fed up with hustle culture or the humdrum of their 9-to-5s, some Gen Zers are turning to an early retirement strategy made popular by millennials to hasten their golden years.
Typically, FIRE followers sock away up to 70% of their yearly income and quit their day jobs after they accumulate roughly $1 million — or 30 times their annual expenses. After retirement, depending on the size of their nest egg, they might have to restrict themselves to small withdrawals each year, or rely on some source of passive income to boost their savings.
The idea is to budget, save as much money as possible by cutting back on non-essential purchases and invest, or consider other income streams early on in your life.
In their early careers, young Americans likely have fewer financial responsibilities than, say, that of the sandwich generation or parents of young children dealing with the rising costs of child care.
So, for those feeling burnt out, unsatisfied and underpaid — and who watched older generations sacrifice their work/life balance for decades in order to enjoy their golden years later on — an early retirement could be the solution.
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Serah Louis is a reporter with Moneywise.com. She enjoys tackling topical personal finance issues for young people and women and covering the latest in financial news.
