Gen Z are dipping into their retirements, skipping meals and selling their belongings just to get by, new reports find

"Gen Z is often stereotyped as frivolous spenders, but new data reveals a far more sobering reality. Nearly half have already dipped into their retirement savings-not for luxuries, but to pay down debt and cover emergencies. Many are also skipping meals, delaying medical care, and selling belongings just to make rent. Despite being the most active 401(k) contributors, Gen Z is being forced to choose between financial responsibility and basic survival."

"More surprisingly, withdrawals were not about splurging on the latest concert, they're doing it to escape their looming debt. Among all generations, 37% of early withdrawals went toward unexpected emergencies. But for Gen Z, the biggest driver was paying off their debt: 42% who tapped into their savings did so to pay it off. By comparison, just 6% of Millennials, 17% of Gen X and 0% of Boomers resort to this."

Nearly half of Gen Z have already withdrawn money from their retirement savings, a higher share than many other generations. Withdrawals among Gen Z are driven primarily by debt repayment rather than discretionary spending, with 42% of those who tapped savings using them to pay off debt. Across generations, 37% of early withdrawals addressed unexpected emergencies. Many Gen Z renters report skipping meals (22%), selling belongings (22%), and delaying medical treatments (19%) to cover rent. Gen Z contributes to 401(k) plans at high rates despite facing acute financial pressures and debt burdens.

Read at Fortune