USAA CEO warns Gen Z will be less prosperous than boomers and Gen X, urges them to take ownership of their success

Gen Z has faced criticism from detractors for their financial habits—but leaders are stepping in to provide necessary context. The CEO believes young workers face unique challenges that prior generations never encountered.

“Unfortunately, I believe our Gen Z population won’t achieve the same level of prosperity as baby boomers and Gen Xers did, for various reasons,” he tells . “This is clearly evident among the Gen Z demographic, including active-duty personnel as well as associate members and their families.”

Andrade acknowledges that numerous young workers are trapped in a difficult predicament, barely managing on extremely low wages. Indeed, they’ve been dealt a poor hand. For instance, in the U.K., the average inflation-adjusted income for working-age graduates has declined compared to fifteen years prior, per a report from Bloomberg.

Securing a salaried position has become more challenging. A 2025 Kickresume study revealed that 58% of recent college graduates face unemployment. In contrast, only 25% of graduates from earlier years—including millennials and Gen Xers—had difficulty finding employment after college.

However, flat wages and a weak job market represent only part of the burden. Limited financial knowledge and the rapid advancement of AI technology are intensifying the strain.

Additional hurdles for Gen Z: limited financial expertise and AI-driven automation

While every generation understands the struggle of living paycheck to paycheck as an entry-level employee, Gen Z finds itself in an especially severe financial crisis. Faced with persistent inflation, elevated interest rates, and stagnant pay, they’re taking on debt merely to achieve basic stability. This is seriously harming their financial health.

Last year, Gen Z saw the most significant annual decline in credit health among all age groups since 2020, per a study. Their average FICO score fell three points to 676—39 points below the national average of 715. Erin Stillwell, head of payments at a financial firm, stated in 2025 that “Gen Z is the first generation to confront high inflation, digital credit, and social media-driven consumption pressures all at once.”

Another fundamental problem is that young people lag decades behind Gen Xers and baby boomers in financial literacy. Many Gen Zers remain uninformed, with nearly half admitting they don’t understand what influences their credit score, per a 2025 survey. Approximately 62% are too anxious to even check their scores. The situation has become so critical that some educational institutions and employers have begun offering supplemental financial education; USAA is delivering financial education and resources to its more than 38,000 employees and 14.3 million members through its $500 million commitment initiative.

The USAA CEO also highlights another emerging issue in the workforce: AI automation. It’s widely recognized that this advanced technology is infiltrating every sector, and even top executives are warning of a potential employment crisis. The entry-level job market is already shrinking; opportunities for beginners have diminished at most companies, leaving young, eager workers stranded. The percentage of Gen Z workers aged 21 to 25 employed at technology firms has dropped over a two-year period, per data from Pave.

“Gen Z’s financial situation also hinges on their employment,” Andrade notes, alluding to AI’s effect on the job market. “We’ve already seen widespread layoffs throughout the economy, which undoubtedly affects individuals.”

Hope remains: USAA’s CEO urges Gen Z to take control of their professional lives

Considering the data, Gen Z has legitimate reasons for feeling discouraged. However, the USAA leader insists that hope is not lost. Emerging professionals maximize their chances of success when they assume control of their own trajectories.

“This advice applies to anyone young and ambitious…No one is more invested in your career than you are,” Andrade counsels. “I still remember that lesson today, because it essentially means your future is in your own hands.”

“Others may help create opportunities, but you must determine what you want to accomplish in life,” he continues. “What are your passions? Don’t rely on chance.”

The CEO obtained this pivotal guidance while employed at insurance behemoth American International Group (AIG). This marked his first foray into the private sector following various high-level U.S. government positions, and during the initial five years after his career transition, Andrade says he tackled his work with “brute force.” Rather than waiting for an ideal opportunity, he seized control of his destiny and achieved success by dedicating his full effort to his role.

“I simply focused intently on working diligently…I never anticipated becoming a CEO,” Andrade explains. “It was merely about performing my duties correctly and excellently, which led to new opportunities.”

With nearly four decades of experience spanning government, insurance, and financial services, the USAA CEO has observed the transformation of the employment landscape. Specifically, he’s seen the impact of the latest labor market disruptor: AI. As technology continues to reshape work, Andrade emphasizes that it’s crucial for Gen Z to examine what genuinely drives them and how they wish to allocate their professional lives.

“I believe now, especially with artificial intelligence emerging, it’s vital for young people—particularly those currently in college nearing graduation, or considering various degree options,” he states.