08.11.23
Gen Z Workers Take Different Investing Approaches Than Older Generations
by: Noah Zuss
Generation Z retirement plan participants have increased their rate of contributions to retirement plans more than Gen Xers and Millennials, according to data from the Financial Industry Regulatory Authority’s Investor Education Foundation and the CFA Institute. Separate Q2 research from Bank of America, FINRA and the CFA Institute found that retirement plan participants in Gen Z increased their deferrals at a higher rate than Millennials and Gen Xers. Among Gen Z investors, more than half (55%) are invested in cryptocurrency, 41% in individual stocks and 35% in mutual funds. Among Millennials, 57% own cryptocurrency, 38% own individual stocks and 43% own mutual funds. In Gen X, 39% of investors own cryptocurrency, 43% own stocks and 47% own mutual funds, the FINRA and CFA data showed. Nearly one-quarter of Gen Z investors (23%) have invested in exchange-traded funds, compared with 26% of Millennials and 22% of Gen X. “The Gen Z population is diverse and digitally savvy,” said FINRA Foundation president Gerri Walsh. “They are using mobile technology to enter the financial markets in unprecedented numbers and consulting a wide range of information sources as they do so. It is vital to understand their investing decisions and to provide them with the educational tools to prepare for those decisions.”
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