As economic pressures intensify in 2025, Americans across generations are thinking about how they spend, save, and plan for the future. From rising tariffs to surging living costs, the landscape is forcing hard choices, many of which have unexpected ripple effects. According to a new report by Socialtrait, nearly 60% of Gen Z plan to reduce their healthcare spending, with mental health services among the first to go.
“Financial pressures are overriding long-term wellness considerations for Gen Z in the U.S.,” said Vivek Kumar, CEO at Socialtrait. “This study’s findings point to critical gaps in healthcare affordability and access, particularly mental health support, which younger Americans increasingly view as negotiable as the economic situation becomes more unpredictable.”
The findings come from an AI-simulated survey that mimics a diverse U.S. population, offering a nuanced snapshot of generational responses to economic instability. The survey shows stark generational contrasts in how financial stress is reshaping priorities, from delaying major life milestones to scaling back essential services like preventive care and mental health.
Gen Z: tech-savvy but healthcare vulnerable
Gen Z, the most tech-literate generation, is the most financially strained. While they are adept at stretching the lifespan of devices and juggling subscriptions, their economic anxiety runs deep. Almost half report feeling financially insecure, and over 80% say they are delaying family formation due to economic uncertainty. Now, even mental health care—a pillar of Gen Z’s self-care ethos—is being viewed as a luxury.
Tariff-driven price hikes are only worsening the situation. As many as 75% of Gen Z respondents said they would delay tech purchases, despite their heavy reliance on digital tools for work, communication, and personal growth.
Millennials and Gen X: stretched thin by family obligations
Millennials are in a balancing act—cutting back on preventive healthcare while trying to meet their children’s needs. With retirement planning feeling like a “distant dream,” they’re focused on staying afloat. Meanwhile, Generation X finds itself sandwiched between two dependents: children and ageing parents. Family health takes precedence, even as they grapple with the highest levels of financial stress and the looming reality of delayed retirement.
Baby boomers: guarding the lifestyle they’ve built
Unlike their younger counterparts, Baby Boomers are more resistant to lifestyle cutbacks. Only 15% reported plans to reduce healthcare spending—many even anticipate spending more. For them, healthcare is a non-negotiable, especially with age-related needs on the rise. Though less anxious about the economy, Boomers are laser-focused on preserving their retirement savings and the quality of life they’ve secured.
Why this matters
The generational gap in healthcare spending alone is telling: a 45-percentage point difference separates Gen Z from Boomers. And while younger generations view mental and preventive care as flexible, older groups see it as essential. These distinctions highlight the need for targeted policy and business responses.
As Socialtrait’s report highlights, a one-size-fits-all model won’t cut it. Healthcare providers, employers, and policymakers must adapt to the emerging realities of a multi-generational, economically strained America. Strategies that are generationally aware, particularly around healthcare access and affordability, will be vital to meeting the evolving needs of Americans in 2025 and beyond.