More than half of young Portuguese people live pay check to pay check, according to a new study by consulting firm Deloitte. The cost of living is the main concern for millennials and Generation Z in Portugal, and many fear they won't be able to save enough to ensure financial comfort in retirement.

According to the "Gen Z and Millennial Survey 2025" — based on responses from 23,000 young people from 44 countries, including 400 in Portugal — 52% of young Portuguese people born between 1983 and 1994 (millennials) and 54% of those born between 1995 and 2006 (Generation Z) depend entirely on their monthly salary, lacking a financial cushion for unforeseen events or emergencies.

Furthermore, about four in ten (41% of millennials and 38% of Generation Z) say they struggle to cover all their basic expenses each month.

Given this scenario, it's no surprise that the cost of living appears as the main concern of young Portuguese people. "This is the fourth consecutive year that this issue has been among the main concerns of young Portuguese people," highlights Deloitte in a report by ECO.

The consultancy also highlights that, under these conditions, more than half of young Portuguese people fear they won't be able to save enough to ensure financial comfort in retirement. "Among millennials, this fear reaches 60%, compared to 44% globally; among Generation Z, it's 54%, while globally it's 41%," Deloitte details.

But budgeting isn't the only source of apprehension among younger Portuguese workers. The new study identifies mental health, political instability, and international geopolitical conflicts as other key concerns for these professionals.

"Mental health is a relevant topic for these generations: 45% of Generation Z and 50% of millennials in Portugal report feeling stressed or anxious most of the time," Deloitte points out. "The long-term financial future is the main source of anxiety and stress for 55% of young people from both generations," the consultancy observes.

Employment is also recognized as a factor that “contributes greatly” to these feelings, especially the feeling of lack of recognition or adequate reward, excessive hours, and toxic workplace culture.