Generation Z: Immediate gratification is more important than retirement

[New Sancai Compilation and First Release] Generation Z (referring to people born between 1997 and 2012) has no illusions about retirement. They just want to live in the present.

That's one of the biggest findings from Intuit's poll of this generation of adults (those aged 18 to 26).

They have good reason to be frustrated, as four major factors are holding them back financially: inflation, discouraging peer comparisons on social media, lower salaries than their parents, and higher student loan balances.

73% of Gen Z say inflation and current economic factors deter them from setting long-term goals, and 66% believe they will never have enough saved for retirement.

This echoes a similar survey from Bank of America, which found that Gen Z sees the high cost of living as a barrier to their financial success.

"Young people are feeling discouraged," said Ted Rossman, senior industry analyst at Bankrate, a U.S. bank rating agency.

Kara Duckworth, managing director at Mercer Advisors, has found that these beliefs are fairly common among younger investors. "As a wealth advisor, I'm aware of those red flags," Duckworth said. Many of her clients are planning long trips instead of trying to save for retirement, let alone emergency savings.

Social media is not only making Gen Z, as young as 11, feel dissatisfied with their bodies, families and relationships, but also with their finances.

This finding is in stark contrast to the recent “FIRE” (Financial Independence, Retire Early) buzzword.

So, what does Generation Z want?

40% of people hope to pursue passions or hobbies, and 37% expect to be able to purchase non-daily necessities. Among baby boomers, the figures were only 20% and 25% respectively.

56% of Gen Z are most concerned about their mental health, followed by continued personal growth (48%).

An Intuit survey found that work-life balance is the No. 1 driving force for Generation Z’s pursuit of wealth. A Bankrate survey found that 83% of Generation Z and Millennials support a four-day work week, and 92% of them are willing to do it. Make sacrifices to achieve this goal.

48% of people are willing to extend their working hours during these four days, 35% of people will change companies or jobs to achieve this wish, 33% of people will complete the daily assigned work, and 20% of people are willing to accept fewer holidays. , 13% are willing to take a salary cut, and 12% are willing to cooperate with the company's arrangements.

(Compiled by: Zhong Daren)

(Editor: Jiang Qiming)

(Source of the article: First published by Xinsancai)