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More and more Swiss people are living paycheck to paycheck.
KEYSTONE
Switzerland is considered one of the wealthiest countries in the world. But a new study shows that many young adults feel little of this prosperity. Nearly one in two people under the age of 43 lives paycheck to paycheck.
Switzerland is one of the richest countries in the world. Nevertheless, many young adults feel under financial pressure. Generation Z and Millennials are particularly affected. According to a new study by the consulting firm Deloitte, nearly one in two people surveyed lives paycheck to paycheck.
Specifically, 49 percent of Gen Z and 48 percent of Millennials say they have hardly any money left at the end of the month. One in three Gen Z members and as many as four in ten Millennials feel financially insecure.
The consequences extend far beyond bank balances. Many are postponing important life decisions because they lack financial security.
46 percent of younger respondents and 60 percent of Millennials say they have postponed plans such as getting married, starting a family, or pursuing further education due to their financial situation. At the same time, more than half of those surveyed say they cannot afford to buy a home.
This figure stands out in particular. Although wages in Switzerland are high by international standards, real estate prices in many places are at record levels. For many young people, homeownership is thus becoming a goal that seems almost out of reach.
The study was conducted in 44 countries. A total of more than 22,000 people participated, including 400 from Switzerland.
The comparison shows that financial insecurity is particularly pronounced in Switzerland. On several key metrics, Switzerland lies well above the international average.
Michael Grampp, chief economist at Deloitte Switzerland, sees this as a warning sign. High incomes do not automatically mean that young people can live without financial worries. Developments in the real estate market, in particular, pose major challenges for many.
Another finding of the study is noteworthy: Despite financial worries, many young people are not primarily striving for greater career advancement or higher positions.
For 23 percent of Gen Z and 20 percent of millennials, a good work-life balance is the most important professional goal. This figure is higher than the desire for continuous career advancement.
Even in an international comparison, Swiss respondents appear to be less career-oriented. Only one-third of Gen Z and about one-quarter of Millennials say they are specifically working toward steady career advancement.
The results paint a contradictory picture of young Switzerland. On the one hand, many benefit from high wages, a stable job market, and low unemployment. On the other hand, there is a growing sense of financial stagnation.
This trend is particularly evident in the housing market. While homeownership was often a realistic goal for previous generations, it now seems to be slipping out of reach for many young adults. This is precisely why the question of how to create affordable housing is increasingly becoming an economic and sociopolitical challenge.
