The things Gen Z is doing differently to protect itself
Covid, inflation and recession are reasons Gen Z is saving more for retirement than millennials and baby boomers.
New evidence suggests our youngest working generation is going further than others to secure its economic future. A report just released by investment management company BlackRock reveals Generation Zers are already putting an average of 14% of their salary toward retirement. According to CNBC, this is a higher percentage than any other generation is saving right now.
This rate also exceeds what millennials did at the same age Gen Zers are now. 2021 research by Fidelity found that 15.8% of Gen Zers were investing in 401(k)s compared with 11.4% of millennials who did so at that life stage.
The message for Gen Z from these formative events is clear: You can’t rely on others to take care of you.
Gen Zers — the oldest of who are turning 25 this year — are blazing their own path when it comes to other aspects of career and work as well. Many are forgoing the traditional four-year college degree in favor of options like trade school and digital credentials. Compared with millennials and Gen Xers, recent research shows Gen Z is instead looking for “shorter, less expensive, more direct-to-career pathways in high-demand industries.”
It’s noteworthy but not surprising that America’s youngest adults are charting a more pragmatic, thoughtful approach toward education, work and saving. After all, events that occur during our childhood, adolescence and early adulthood have a strong influence on our attitudes and behaviors — even stronger than things we experience later in life. For our oldest Gen Zers, that has meant growing up during a tide of dislocation — particularly of the economic variety.
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