![]() ![]() They are also open to help from a financial professional to develop a plan and stay on track. Younger generations are more open to financial wellness tools, including online tools to help save for retirement, build an emergency savings fund, and manage debt. However, more than a quarter of Gen Z workers don’t know how much they will need in monthly income to live comfortably in retirement.įrom Internet to IRL: Young Workers Cast Wide Net for Advice ![]() Gen Z and Boomers estimate having enough for 25 years, while Millennials and Gen X say 22 years. Gen Z thinks they need to save $1.4 million for retirement while Millennials estimate $1.8 million, and all generations think their savings will last about the same amount of time. More than 90% of younger workers say they are very or somewhat likely to achieve their retirement savings goals. Gen Z wants to retire at 60 and Millennials at 62, compared to 64 and 67 for Gen X and Boomers. Still, younger workers are staying optimistic and intend to retire early into an active lifestyle that includes enjoying life, travel, and spending time with family. Rising costs and market volatility continue to cause concern for all workers, but Gen Z and Millennial workers are more likely than older workers to cite unexpected expenses, education costs, and supporting family members as obstacles to saving for retirement. More than 7 in 10 younger workers say it’s important that their 401(k) investments reflect their personal values. ![]() More than a third wish they could select ESG investments, and nearly as many say they’re interested in fractional shares. More than 4 in 10 Gen Z and Millennial workers wish they could invest in annuities and cryptocurrency in their 401(k). Young workers say they want a wider range of investment options and vehicles. In the past year, many Gen Z (38%) and Millennial (27%) workers changed employers and they have had the opportunity to take a fresh look at how they are saving and investing. Instead, many Gen Z workers first got involved in investing through mobile trading (22%), cryptocurrency (11%), traditional brokerage accounts (10%) and health savings accounts (9%). Only 37% of Gen Z workers say their first investing experience was through a 401(k), a lower proportion than Millennials (54%), Gen X (61%) and Boomers (61%). They see an opportunity to reach their financial goals through diverse assets that are making them excited about investing and engaged in their financial futures." The 401(k), while still their primary retirement savings tool, is no longer viewed as their only path to retirement. "They are questioning traditional approaches to both work and retirement as they have changed jobs and reconsidered priorities during the pandemic. "Younger workers today are beginning their financial journey from a different place than older generations did when they began," said Catherine Golladay, Head of Schwab Workplace Financial Services. While the 401(k) remains the top retirement savings vehicle for today’s workers overall, Gen Z and Millennial workers are more likely to also invest in cryptocurrency, real estate, annuities, and small businesses, unlike older generations. WESTLAKE, Texas, October 25, 2022-( BUSINESS WIRE)-Young workers are relying on more than their 401(k)s to save for retirement as other types of investments play a greater role in their long-term wealth plans, according to the annual nationwide survey of 401(k) plan participants from Schwab Retirement Plan Services. ![]()
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