Gen Z and Millennials Face Financial Pressure; Planning Becomes Key

Jakarta — Indonesia’s younger generation, particularly Generation Z (Gen Z) and millennials, are known to harbour significant aspirations for the future. These include building their own businesses, achieving financial freedom, and living more independently from an economic perspective, goals that many young Indonesians aspire towards.

However, beneath this optimism lies considerable concern regarding financial preparedness to realise these dreams. A 2025 YouGov survey revealed that 46 per cent of the sandwich generation reported experiencing no increase in their income. Simultaneously, rising cost of living has become a tangible challenge for this group.

Inflation was cited as the primary challenge by 47 per cent of respondents, whilst 31 per cent acknowledged experiencing income decline from their businesses. The sandwich generation refers to the economically productive age group bearing the financial burden of two generations simultaneously—parents and children.

In everyday life, these challenges have prompted many Gen Z and millennials to postpone important financial decisions. Uncertainty about the future, shifts in employment structures, and family responsibilities have fostered awareness that optimism alone is insufficient without sound and sustainable financial planning.

Amidst these various pressures, there is growing recognition amongst young people of the need to plan their financial futures early. Indeed, 88 per cent of respondents expressed a desire for financial protection and stable economic conditions in old age to avoid becoming a burden on their families.

This finding aligns with the 2026 Indonesia Millennial and Gen Z Report by IDN Research Institute, which showed that 63 per cent of young people engage in side work to support their families. Meanwhile, 60 per cent of respondents stated that these additional jobs are undertaken to build personal savings.