When it comes to retirement savings, Gen Z and Millennials don’t want to just “set it and forget it.” Instead, these younger generations are more proactive with their long-term savings.
Two-thirds of Millennials expect to self-fund their retirement with retirement accounts such as 401(k)’s. Millennials are taking action now because they worry that Social Security will not be there for them when they retire.
Money Mindset
The word “wealth” originates from Old English and means “well-being.”
Today, when we traditionally think of wealth, it’s about the size of our bank account and our luxury possessions. But we may be circling back to the word’s initial meaning.
To Gen Z and Millennials, ” wealth ” means more than having much money. It’s more about what money can do for you, and the concept of wealth combines wellness and money.
Yes, money is still important, but money is a tool that helps us lead a purpose-driven life by pursuing our passions and sharing our life with those we care about. It means finding a healthy work-life balance, investing in personal growth, and nurturing fulfilling relationships.
Dollars and Data
The Transamerica Center for Retirement Studies (TCRS) finds that workers across generations agree that they highly value retirement benefits. In fact, 89% of workers value a 401(k) or similar retirement plan as an important benefit. However, Gen X (92%) and Millennials (90%) are more likely to value retirement benefits compared with Baby Boomers (84%) and Gen Z (82%).
Charles Schwab’s 2023 Modern Wealth Survey finds that Millennials are more likely to feel wealthy: Millennials (57%), Gen Z (46%), Gen X (41%) and Boomers (40%). More Americans now reference wellbeing (40%) more than money (32%) or assets (26%) when describing wealth.
For those who don’t have a documented formal financial plan, 44% say they don’t have enough money to need a plan. Unfortunately, these people don’t understand that financial planning may be even more critical if they don’t have much money because it can help them identify and prioritize their goals.
Planning with PT Business Solutions
Employers seeking to retain talent must consider young workers’ saving and investing preferences as they evaluate their benefit programs. Your workers want to feel heard, and you can make a powerful statement when you provide benefits that reflect what they want.
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