Summary
Younger people in Generation Z are changing how they think about saving for the future. Rather than focusing on pensions for retirement, they are choosing flexible work, freelancing, and investments they can control now. Many do not trust that traditional pension systems will be there for them in the future.
Key Facts
- Gen Z includes people born between 1997 and 2012.
- Nearly half of Gen Z in the UK and US doubt the state pension or social security will be available when they retire.
- Only about 15% of private employers still offer traditional pensions.
- Gen Z workers are more likely to have used their retirement savings early compared to older generations.
- A study suggests UK 25-year-olds may need £3.1 million ($4.1 million) to retire at 65.
- Many companies now offer 401(k) plans instead of pensions.
- Gen Z values retirement savings that are flexible and can move with them from job to job.
- Gen Z is focusing on new savings models to match the changing economic environment.
