The Coming of Age Report by Afterpay has revealed how young Aussies are setting social boundaries and letting go of societal norms like never before.
Coming of Age in Australia is changing. Gone are the days where being married with kids before the age of 30, or owning a home in your 20s, is considered the norm, with a new report from Afterpay revealing 1 in 5 Gen Z Aussies (21 per cent) believing they’ll never be able to afford their own home.
From navigating the housing market, to prioritising mental health over their career, and changing the ways they make and maintain relationships, the Afterpay Coming of Age report reveals how Gen Z Aussies are managing their finances, optimising their work/life balance, and actively planning for their future. The report also explores how young Australians are fairing as they enter adulthood compared to the generations that came before them.
From the rising cost of living to the lingering effects of the pandemic, Gen Z have been hit by multiple crises as they’ve entered adulthood. Today, only 1 in 6 (16 per cent) of Gen Z’s own their own home, compared with a quarter (24 per cent) of Baby Boomers at the same age.
The knock on effect of this can be seen through changing home and work lives, with 20 per cent of young Aussies saying that getting engaged or married isn’t on the cards for them right now, a drop of 50 per cent from previous generations. Becoming parents has also been deprioritised, with only 1 in 3 (34 per cent) Gen Z Aussies already having kids, compared to almost half (43 per cent) of over 30s at the same age.
Gen Z started their careers during a major shift in workplace expectations and culture. As bosses
look to revert back to the old-school, in-person office grind; young Aussies are all about that
work/life balance, with 35 per cent saying that flexible working is a top consideration when job hunting.
While over half (52 per cent) of young Aussies identify their career as a main priority, career loyalty isn’t a
high priority, with three quarters (77 per cent) willing to job hop for a better opportunity, and 80 per cent
believing it’s important to have a side hustle to supplement their income – a growth of almost half
(45 per cent) compared to their over 30’s counterparts.
Gen Z are flipping the script on how they make new friends. Gone is the drinking scene, with over
half (56 per cent) drinking less than once a week, and the popularity of going out for dinner dropping by
over a third (36 per cent) from previous generations.
When it comes to dating, 1 in 3 (31 per cent) Gen Z’s prefer to grab a coffee, deprioritising the previous generations preference for a lunch/dinner date (47 per cent). It’s not only romantic relationships that have changed, young Aussies are also redefining how they maintain relationships. While almost half (49 per cent) of older Aussies are likely to catch up with their mates on the phone (rising to 58 per cent of Baby Boomers), less than a third (31 per cent) of Gen Z’s list this as their preferred mode, opting for digital communication (39 per cent) instead.
With constant news reports on the rental crisis and rising interest rates, Gen Z aren’t playing around, taking control of their future by saving for the long term more than previous generations. Over a third (65 per cent) of Gen Z are actively saving for their retirement in addition to their superannuation, compared with 2 in 5 (43 per cent) of their older counterparts at the same age. Additionally, the perceived ‘ideal’ retirement package has increased in the eyes of younger Aussies, with Gen Z’s believing they will need $1 – $1.5M, up 25 per cent on Millennials who considered $750k – $1.25M the amount to aim for.
While Gen Z Aussies are prioritising their future, their current savings aren’t as fruitful, with almost half (42 per cent) admitting they have $10,000 or less in their bank account and a third (31 per cent) having $5,000 or less.
The Australian property scene has been a wild ride lately, with rental prices soaring by 13.2 per cent in just a year. As such, confidence in the Australian property market is at a low, with over half (56 per cent) of young Aussies believing the current rental crisis will stay the same or worsen, and almost a quarter (22 per cent) concerned they’ll never be able to afford a property of their own.
While a similar amount of Gen Z Aussies already own their own home compared to older generations at the same age (28 per cent vs 30 per cent), Gen Z is more likely to own and live on their own (11 per cent vs 5 per cent), whereas older generations were more likely to live with a spouse or partner (7 per cent vs 18 per cent)
“The world is changing at a fast pace, and Gen Z’s have had to adapt to that like no generation before them. Whether it’s starting their careers in lockdown and not adapting to hybrid or office working, growing up in a completely digital world, or having to navigate the ever-changing housing market,” said Katrina Konstas, country manager at ANZ.
“The Afterpay Coming of Age report reveals exactly how much has changed since the older generations were in the 20’s – from the Baby Boomers who came of age in a post-depression world, through the Millennials who navigated the analogue to digital change. The findings show Gen Z’s priorities have shifted greatly, choosing to focus on themselves more than any generation before them, and are maturing in ways that will reshape the next generation’s relationship with life’s fundamental aspects”.
Further key findings include:
- (Don’t) put a ring on it – 25 per cent of Gen Z’s are not in a relationship or actively dating, and only 24 per cent are married or engaged, compared with 50 per cent of Millennials and 62 per cent of Boomers at the same age
- Focus on health – Over three-quarters (78 per cent) of Gen Z Aussies have taken a day off work due to work-related stress, a huge leap compared to Gen X (38 per cent) and Baby Boomers (17 per cent) at the same age
- Super for superannuation – Younger Aussies are also more savvy when it comes to superannuation, with 3 in 4 (77 per cent) of both Gen Z’s and Millennials understanding how superannuation works, compared with almost a third (60 per cent) of Gen X and 2 in 5 (43 per cent) of Baby Boomers at the same age.
