While 44% of Gen X and millennial respondents spend over 40% of their income on housing, only 35% of Gen Z do the same
Canadian workers are making some financial gains, with Gen Z saving the most, but buying a home is still tough.
A new National Payroll Institute survey conducted among 2,320 working Canadians, showed that financially stressed workers dropped to 36% in 2025 from 41% in 2024. Meanwhile, 30% of workers now feel financially comfortable, up from 28% last year. The Institute said this improvement is mostly because more people are prioritizing saving.
“Filled with uncertainty rooted in the rising costs of living, and the impacts of tariffs on both job security and the economy, savings are one way that Canadians may be preparing for future challenges,” Peter Tzanetakis, president and CEO of the National Payroll Institute, said.
Gen Z’s financial habits defy expectations
The survey revealed that Gen Z workers save an average of 11% of each paycheque, more than any other generation. Nearly 70% of Gen Z respondents reported trying to save more this year, compared to 56% of millennials and just 36% of boomers.
Gen Z also holds the second-highest share of workers in the financially comfortable cluster, at 32%, surpassing both millennials and Gen X.
Homeownership: A fading dream?
Despite their savings discipline, Gen Z’s prospects for homeownership remain dim. Only 26% of Gen Z respondents expressed confidence in their ability to afford a home in their desired area within the next five years. Statistics Canada data supports this, showing that households under 35 are the only group to have reduced their mortgage debt since 2022, as rising costs and interest rates push homeownership out of reach.
While 44% of Gen X and millennial respondents spend over 40% of their income on housing, only 35% of Gen Z do the same.
But other studies have highlighted burdens for younger Canadians. Wahi’s 2025 Homebuying Pressure Point Survey revealed that young Canadians are experiencing considerably more pressure to acquire property compared to previous generations. This pressure, the survey suggests, is akin to the societal expectations surrounding marriage and starting a family. Fifty-four percent (54%) of millennials and 41% of Gen Zers have felt compelled to own a home, while, only 30% of Gen Xers and 13% of baby boomers, generations with higher homeownership rates, reported similar sentiments.
Financial stress still weighs on productivity
Despite these gains, financial stress remains a significant drag on Canadian businesses, costing $69.5 billion in lost productivity annually. Over half of all workers admit to spending at least 15 minutes per day worrying about finances at work, with nearly one in four acknowledging that this stress has impacted their job performance.
Aside from lost productivity, financial strain also force many young Canadians to rethink family planning, according to BMO Financial Group’s latest Real Financial Progress Index. The survey found that 70% of Gen Z and 69% of Millennials want children but fear starting a family could undermine their financial security.
