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National

Gen Z is investing in their retirement, but anxiety— not prudent financial planning — is often the motivator.

The big picture: Young workers have started their careers facing an unwelcoming job market, a student loan debt crisis, rising housing costs, and threats to Social Security. They're also tasked with securing a future that feels increasingly far away.

"It's great that we're starting to see the youngest generation of workers starting to save earlier when they start working for the future and for retirement," Angela M. Antonelli, the executive director of Georgetown University's Center for Retirement Initiatives, says. 

"But I think that's probably driven by concerns about the future and what it looks like for them."

Case in point: "I think Gen Z, when we were kids, we had a dream of a reality that doesn't exist anymore," Leeah Marie Derenoncourt, 24, says.

Derenoncourt, a digital nomad who works in public relations, says she contributes to her 401(k) and has a Roth IRA — but retirement still feels somewhat unachievable.

"Even if I put most of my savings into these accounts, I don't expect that those accounts are going to be the reason I'm able to survive and retire later on," she says.

Zoom out: Workers between 18 and 24 are the least likely age group to report having quality jobs, according to a recent Gallup report. Financial well-being is one of the factors that define a quality job.

Between the lines: "Gen Z young workers need a reframing around retirement," Surya P. Kolluri, the head of the TIAA Institute, says.

A gap in financial literacy, he says, was created when the onus shifted from company- or government-provided pensions to individuals managing their retirement savings.

"A need arose for financial education, and I don't know that we have done a good job," he says.

Reality check: Things aren't necessarily dire for all young workers.

47% of Gen Z is on track for retirement — slightly outpacing millennials, Gen X and baby boomers, according to a November Vanguard report.

Rachel Lemons, 21, has been contributing to a Roth IRA for about two years. The Northern Arizona University student says they were motivated by a financially conscious family to take "baby steps" for future financial freedom. 

"I have seen firsthand how my grandparents, my parents are working far past that general retirement age, partially because they want to and partially because they have to," they say.

The bottom line: Tim Moriarty, 24, and his friends frequently talk about the cost of living as they wonder how they'll support themselves and potential families down the line. 

Moriarty, a high school paraprofessional in Tinley Park, Illinois, is monitoring reforms to the state's pension system. He also regularly maxes out his Roth IRA.

"I think you have to think about it because if you don't think about it, you don't want to be 60 years old and so far behind," he says. "But it's also kind of hard to plan for."

Go deeper: Gen Z is facing a job market double-whammy

Gen Z is facing a job market double-whammy

Anxiety fuels Gen Z's retirement planning

"Even if I put most of my savings into these accounts, I don't expect that those accounts are going to be the reason I'm able to survive and retire."

Illustration of Benjamin Franklin with his hand up to his face, looking out through his fingers.

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The U.S. health system faces critical questions about cost, access and equity. Technological advances and new discoveries about diseases like cancer and Alzheimer’s are transforming patient care and reshaping public health.

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Vice President JD Vance plans to literally fly above MAGA's rising civil war — campaigning coast to coast in the midterms and sticking close to President Trump, while building support for an expected presidential run in 2028. 

Why it matters: Vance has to get ready for a national campaign. But he can't look too eager, since President Trump isn't one to share the spotlight.

Vance aides say he's focused on next November's midterms, not thinking about 2028. But talking with outside Vance allies and others familiar with his thinking, Axios stitched together the VP's five-pronged plan for making 2026 pay off later:

1. Be a loyal VP. Vance's biggest priority is to show he's loyal to Trump above all else. Trump is the dominant figure in the Republican Party, and that won't change before 2028 kicks off. So for Vance to be the GOP nominee, he'll need Trump's strong backing.

Republicans expect Vance to continue to vocally support Trump's policies, even ones that aren't always popular with some parts of the GOP. At the same time, Vance will try to lay the groundwork for 2028 — without eclipsing his boss.

2. Stay out of MAGA's civil war. Vance has no intention of taking sides in the civil war among celebrity MAGA podcasters, who are fighting bitterly and publicly over antisemitism and America's role abroad. 

The feuds were a backdrop for Vance's appearance earlier this month at Turning Point USA's AmericaFest, where he condemned "endless, self-defeating purity tests," and said he "didn't bring a list of conservatives to denounce or to deplatform."

Republicans close to Vance say he knows it makes no sense to antagonize any MAGA faction so far in advance of the 2028 primary. Vance, who was close friends with Charlie Kirk, has made opposition to censorship a key part of his political identity.

One person familiar with Vance's thinking said he's working to be a "voice of unity against the left."

3. Raise big money. Vance was named finance chair of the Republican National Committee, helping him meet top donors nationwide long before a 2028 campaign.

The VP has deep connections among Silicon Valley billionaires, but still needs to cultivate more traditional GOP fundraisers and check-writers.

Locking down big donors will also help Vance deprive potential GOP challengers — including Sen. Ted Cruz of Texas and Sen. Josh Hawley of Missouri — of the cash they'd need.

4. Play big in '26. Vance is expected to spend much of next year campaigning for Republican midterm candidates. That'll help him earn chits, deepen his ties to local organizers and activists, and get new allies who could be helpful for what's next.

Keeping the GOP's congressional majorities is key to the White House agenda in 2027 and 2028 — which could help motivate Republican voters in the next presidential election.

And if Republicans defy history and perform better than expected in the midterms, Vance could get some credit.

5. Lean on an influencer army. Vance could soon face fire from would-be Republican challengers. Sen. Rand Paul of Kentucky edged into that territory last week on ABC's "This Week," refusing to back Vance as the party's next standard-bearer.

Republicans familiar with Vance's thinking say that hitting back would diminish his stature. Instead, he'll try to rely on conservative online personalities who've long been in his corner, including Donald Trump Jr. and Jack Posobiec. Many of those figures advocated for Trump to pick Vance.

What they're saying: William Martin, communications director to the vice president, told Axios that Vance "has been very clear since taking office in January that his number one priority would be helping President Trump fulfill their campaign promises of secure borders, affordable prices and safety in our communities. That's exactly what they've done during their historic first year in office together."

"In the new year, Vice President Vance will continue delivering on those promises while campaigning aggressively with Republicans across the country to win the midterms." 

Go deeper: Off-cycle elections send Republicans a warning for midterms.

JD's 2028 plotting: Vance's next moves

Axios stitched together the VP's five-pronged plan for making the next year pay off down the road.

Erika Kirk greets Vice President JD Vance during Turning Point USA's AmericaFest 2025, Sunday, Dec. 21, 2025, in Phoenix. (AP Photo/Jon Cherry)

Erika Kirk greets Vice President JD Vance during Turning Point USA's AmericaFest  in Phoenix on Dec.  21. Photo: Jon Cherry/AP

Donald Trump

Elections 2024

2024 will be an election year like no other, as President Biden seeks re-election amid economic uncertainty, two wars and questions about his age. His likely foe, former President Trump, faces felony charges and vows revenge on his political enemies. Meanwhile, Americans generally are dissatisfied with those choices and are divided over immigration, race, education and more.

Politics & Policy

A map showing U.S. states that are expected to raise the minimum wage in 2026. As of December 2025, 22 states will raise wages. Hawai'i will have the biggest increase, from $14 to $16 an hour. By the end of next year, 13 states will have wages of at least $15 an hour.

States raising minimum wage in 2026

Data: National Employment Law Project; Map: Kavya Beheraj/Axios

Workers in 19 states are in line for a raise when minimum wage increases take effect on New Year's Day.

Why it matters: Beyond those earning minimum wage, these increases often push employers to raise salaries for workers higher up on the income ladder.

The big picture: More than 8.3 million workers will see their pay go up on Jan. 1. That includes both those getting a direct increase and others indirectly affected when companies adjust wage ladders, according to an estimate from the progressive Economic Policy Institute. 

The extra boost comes at a time when rising prices are particularly punishing for the lowest earners.

Another three states — Florida, Alaska and Oregon — are increasing their minimum wages later in the year.

Stunning stat: For the first time, there will be more workers in states with a minimum wage of $15 an hour or higher than those with the federal minimum of $7.25.

Between the lines: More than a decade ago, labor advocates' fight for a $15 an hour wage seemed radical — not so much anymore.

By the numbers: Missouri and Nebraska will cross the $15 milestone on Jan. 1.

Four states' minimum wage will rise to $17 or higher, for some or all of their workers, by the end of the year.

These include Washington state, where the minimum is rising 2.8%, to $17.33; New Jersey, which will have a wage floor of $18.92 for long-term care workers, and New York City, Long Island and Westchester County in New York state ($17 for all workers).

State of play: The 19 states that are raising their minimum wage on Jan. 1 are: 

Arizona, California, Colorado, Connecticut, Hawai'i, Maine, Michigan, Minnesota, Missouri, Montana, Nebraska, New Jersey, New York, Ohio, Rhode Island, South Dakota, Vermont, Virginia and Washington state.

Zoom in: Even if they're not at that milestone yet, many states and cities, both red and blue, raised their minimum wages far beyond the federal rate, which has been stuck at $7.25 an hour since 2009.

Ohio's minimum wage will increase 2.8%, to $11, on Jan. 1.

Arizona's is moving up 3.1%, to $15.15. Virginia's up 2.9%, to $12.77.

Yes, but: 20 states, mostly in the South, still use the $7.25 an hour rate. 

Many states have passed so-called preemption laws that prevent cities from passing higher minimum wages.

Some policymakers and business owners argue that higher minimum wages are costly for businesses and lead to less job growth.

Reality check: These are still very low wages — high inflation has eroded the value of $15. 

The bottom line: The lowest wage earners in the country are getting some good news next year.

States where the minimum wage is going up in 2026

More than 8.3 million workers will see their pay go up on Jan. 1

Inflation

One video shows multiple Black women screaming and pounding on a door with the caption "store under attack." Another captures distraught Walmart employees of color being loaded into an ICE van. 

Why it matters: These AI-generated viral videos aren't just perpetuating racism —  they're influencing political discourse.

The big picture: Creating a fake AI-generated video is easy. Come up with a prompt of what you want to see (it can even include typos) and apps like OpenAI's Sora and Google's VEO 3 can easily spit one out.

It used to be easy to spot fake AI content — think about the hands with 7 fingers and the like — but the technology is getting increasingly better.

The trend replicates digital blackface, which is the practice of a non-black person creating a Black or brown character online for social currency such as likes and reposts or malicious disinformation campaigns. 

And because TikTok and other social media platforms now allow users to generate revenue based on interactions, the trend is likely to get worse.

What they're saying: "It's more of the outrage farming that we've always seen," Rianna Walcott, associate director at the Black Communication and Technology (BCaT) Lab told Axios. 

"It doesn't even have to be interesting or accurate content, it just has to generate viewership."

"If you are a person who's just trying to make a quick buck or do whatever for nefarious reasons, this is the best way to do so," she added.

Case in point: Several fake viral videos of Black women talking about abusing their SNAP benefits during the government shutdown caused users to celebrate the pain families felt from losing those dollars.

The videos not only continued the racist stereotype that Black women are "welfare queens" relying on the government for "free money," but also seemingly influenced users in the comments to turn against the SNAP program overall.

Reality check: Most SNAP recipients are predominantly non-Hispanic white people. 

One user ID'd a video they shared as fake, but still encouraged others to share it because it justified their viewpoints about alleged SNAP fraud.

Zoom in: "Even if somebody knows that an image is false, it still goes into their psyche," Michael Huggins, of the racial justice organization Color of Change, told Axios in a phone interview. 

 "The consequences of these images getting out there is that these harmful stereotypes seep into people's brains," said Huggins, deputy senior director of government affairs.

"So many people get more of their news from social media. And my worry is that it could have a huge impact on how people perceive the upcoming midterm elections, and even the impact on the 2028 election." 

The other side: Companies have taken some precautions to prohibit racism and reduce misinformation on their platforms.

A deluge of disrespectful videos of Rev. Martin Luther King Jr. caused OpenAi to stop allowing users to replicate his likeness. Plus, particularly offensive language like slurs or graphic violence are banned on Sora, according to their policy page. 

A spokesperson for OpenAI added that Sora-generated videos include "visible, moving watermarks" and that they "take action when we detect misuse or receive reports of violations."

A. spokesperson for Veo 3 maker Google pointed Axios to their use policy, which prohibits hatred, hate speech, the incitement of violence and misinformation.

The bottom line: It's easy to think these videos are just fun and games, but that's exactly what it makes it so "harmful," organizational psychologist Janice Gassam Asare told Axios.

"It is that deep and everything is that serious," she said. 

"I would just encourage people to be a little bit more cautious when they see something on social media, and ask yourself, 'how do I know that this is actually real?'" 

Racist AI fakes are now a business — and a political tool

Fake content is influencing how people see government programs, race, and potentially even elections.

Axios

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