A third said they were very likely to take computer-generated advice, compared to a quarter of other generations, and 60% of Gen Z participants are very likely to take financial advice from a human, compared to 54% older respondents.

One in 3 Gen Z participants said they want help managing their living expenses so they can save more money for retirement, compared to 22% of all other participants, and 29% want help with manage their debt, compared to 15% for everyone else.

They are also interested in their general financial well-being; about half welcome online assessment tools that can give them a big financial picture and a plan of action.

Generation Z is more optimistic than other generations about adopting positive financial behaviors in the post-pandemic world:

  • Save more in general: 62% vs. 47%.
  • Debt repayment: 48% vs. 33%.
  • 401 (k) contribution increase: 47% vs. 36%.
  • Invest more outside of their 401 (k): 44% vs. 34%.
  • Rebalancing their 401 (k): 40% vs. 30%.

The survey results indicate that saving and investing for retirement may be more important for working Gen Z than for other generations. Only 43% of Gen Z are optimistic about reaching their retirement goals, compared to 53% of all other participants, and only 7% expect their retirement income to come from Social Security, compared to 17% for older generations.

Gen Z workers said they expect 36% of their retirement income to come from their 401 (k) savings or that of their partner, while older workers expect 41 % of these sources.

Helping young workers plan and save

Across the generations, 401 (k) plans continue to be a must-have benefit for workers who often struggle to keep track of multiple accounts when they change jobs, according to Schwab. This includes Gen Z participants, who said they’ve already changed jobs twice on average.

Thirty-one percent of Gen Z said they didn’t feel on top of their 401 (k), compared to 23% of older participants, and 51% admitted they didn’t know which investments to choose for may their 401 (k) have had enough. in retirement, compared to only 32% of older participants.

Many Gen Z and Millennial participants said they wanted more investment options in their retirement plans. Forty-five percent of Gen Z and 52% of Gen Y wanted a guaranteed income option in their retirement plan, compared to 39% of Gen X and 26% of Baby Boomers.

Likewise, Gen Z and Gen Y are more likely than Gen X and Baby Boomers to seek ESG and socially responsible investment options. More former than latter also wish to have fractional shares as an investment option.

Younger and older generations also differ in their interest in benefits beyond 401 (k), including emergency savings accounts, financial wellness programs, and tuition reimbursement – all this to manage daily finances in addition to saving for retirement.