Credello: You May Be Surprised at How Gen Z Feels About Saving for Retirement

NEW YORK, April 11, 2022 (Newswire.com) - Retirement planning is a daunting task for many people. Having to save for retirement on top of many other commitments can be overwhelming. But you may be surprised at how Gen Z feels about saving for retirement and what tips you can learn from their habits.

How Gen Z feels about retirement

Gen Z is a generation that is largely unprepared for retirement. They are more likely to work until they are over 65 years old, and many of them don't think they'll have any savings or investments to rely on for their golden years. However, Gen Z does feel a sense of responsibility to save for retirement. They are more likely than older generations to start setting money aside and be aware of money mistakes to avoid in their 30s to better secure their ability to retire on time and comfortably.

How They Plan To Save For Retirement

Gen Z is a generation different from its predecessors. They are more mobile, have a different view on living their lives, and want to save for retirement. They plan to save for retirement using various investment options, such as mutual funds. They also believe it's essential to start saving for retirement as early as possible to have enough money saved up for when they reach retirement age.

What retirement tips you can take from Gen Z

Gen Z is known for being a generation always on the go and with the latest gadgets and technology. However, when it comes to their retirement, this generation may surprise you with some of their tips on saving for retirement.

Invest in a Roth IRA

According to a study by Bankrate, 78% of Gen Zers believe that it's important to save for retirement, even if they don't have a specific plan in place. This is likely because Gen Zers have seen the job market rise and fall repeatedly and have seen the way Millennials have struggled to maintain adequate employment. As a result, many are investing in Roth IRAs as their primary way to save for retirement since it's not directly tied to any employer.

Diversify your retirement savings

Gen Z is a very diversified generation when it comes to their career paths and personal lives. This has made them more individualistic and less reliant on traditional retirement savings vehicles such as pensions or 401k plans.

While Gen Z does believe in saving for retirement, they are not as focused on having a large sum of money saved up as they are on accessing the money they have saved in a variety of ways. This includes having the ability to withdraw funds easily during retirement, accessing the money through an annuity or life insurance policy, or investing the money in various options.

Overall, Gen Z believes that diversifying their retirement savings is critical in ensuring that they can access the money they have saved in a variety of ways.

Optimize your spending

Gen Z is more likely than any other generation to live with their parents into their thirties, and they're also the most likely generation to be financially independent. 

That said, research shows that Gen Z is more likely than any other generation to have a retirement savings plan. Members of this generation are also more likely to think about how they can optimize their spending to save more money. This might include setting realistic budget goals, automating expenses, so they don't have to think about them, and being strategic about when and where they spend their money. 

The bottom line

It's important to plan for retirement, but it's also important to stay motivated. There are many challenges that Gen Z faces when they try to retire early, but they are determined to make it work, and you can, too.

Source: Credello