Gen Z, the generation born between 1997 and 2012, is set to make up more than a fourth of the workforce in two years. This digitally-native generation entered the job market during the pandemic and has since embraced remote and flexible work. Surprisingly, despite the uncertain economy, Gen Z expects to retire at age 61, which is younger than any other generation’s retirement estimate. However, they also expressed concerns about saving for retirement, with 99 percent of Gen Zers surveyed expressing worry about being able to save while covering monthly expenses and having emergency funds.
Despite their concerns, Gen Zers are proactive in seeking financial advice and have a keen sense of financial self-awareness. According to a survey by Charles Schwab, 62 percent of Gen Z believes their financial situation warrants professional advice, the highest percentage among all generations. They are also the most open to using artificial intelligence-based digital tools for financial planning, with three-fourths of Gen Zers expressing a willingness to utilize such tools.
While retirement savings are a priority for Gen Z, they also highly value work-life balance. The survey found that almost 90 percent of Gen Zers would forgo a raise in exchange for better benefits, such as flexible hours, hybrid work options, and unique perks like mental health days or wellness product reimbursements. This generation also has a more flexible approach to work, with a significant percentage having a side hustle that could potentially turn into a full-time career if desired.
Overall, Gen Z is a generation that is both ambitious and cautious about their financial future. They prioritize retirement savings while also seeking a healthy work-life balance and utilizing technological tools for financial planning.
