“I think, unfortunately, our Gen Z’s are not going to be as well off as our boomers and Gen Xers were, for different reasons,” he tells Fortune. “You definitely see it among the Gen Z generation, both active duty as well as associate members [and] family.”
But stagnant paychecks and a lackluster labor market are only part of the squeeze. A shaky grasp on money and a fast-moving wave of AI disruption are compounding the pressure.
Every generation knows what it’s like to be an entry-level worker scraping by paycheck to paycheck, but Gen Zers are in a particularly dire economic rut. Up against stubborn inflation, high interest rates, and stagnating salaries, they’re borrowing money just to reach baseline stability. And it’s severely damaging their financial wellbeing.
“[Gen Z’s finances] also depends on the jobs that they’re in too,” Andrade explains, referencing the impact of AI on the workforce. “There’s been a lot of layoffs already across the economy, and that certainly impacts people as well.”
Stepping back and looking at the stats, Gen Z has every right to feel dejected. But not all hope is lost, the USAA leader says. Budding professionals have the best shot at successful careers once they take ownership of their own paths.
“This is important to anybody that’s still young and coming up…Nobody cares more about your career than you do,” Andrade advises. “And to this day I remember that, because what that basically means is that this is up to you.”
“Other people can help open doors, but you’re the one that has to figure out what it is that you want to do with your life,” he continues. “What are you interested in? And don’t leave it for luck.”
The CEO received that critical advice while working at insurance giant American International Group (AIG). It was his first private-sector job after serving in several top U.S. government roles, and during the first five years post-career switch, Andrade says he approached work with “brute force.” He didn’t wait for a golden opportunity; taking matters into his own hands, Andrade succeeded by simply pouring all his energy into the job.
“I just had my head down, working hard…I never expected I’d be CEO of anything,” Andrade explains. “It was just doing my job right, and doing it well, and doors opened because of that.”
Nearly 40 years into his career across government, insurance, and financial services, the USAA CEO has witnessed how the jobs landscape has evolved. Namely, in the throes of the world’s newest labor market disruptor: AI. As tech continues to change the nature of work, Andrade says it’s more important than ever that Gen Zers interrogate what truly motivates them, and how they want to spend their careers.
“I think now, particularly with the onset of artificial intelligence, it’s important for kids—particularly the ones still in college and about to graduate, or [are] thinking about different degrees,” he says.
