Gen Z wants to retire early. They're off to a good start
businessinsider.com
Gen Z wants to retire early. They're off to a good start
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Re: Gen Z wants to retire early. They're off to a good start
#2> For Gen Zs, there seems to be a correlation between gambling and investing—particularly, high-risk investing. In the United States, 61% of surveyed Gen Z investors said they gamble online or in person, compared with 29% of non-investors surveyed. Their propensity for gambling is also associated with riskier investments; 70% of US Gen Z investors who gamble frequently invest in crypto, and 38% invest in non-fungible tokens.
(from the CFA Institute survey cited in TFA, https://rpc.cfainstitute.org/en/research/reports/2023/gen-z-...)
Re: Gen Z wants to retire early. They're off to a good start
#3> Gen Z started saving for retirement at the median age of 19, earlier than any other generation
? Median? These numbers seem unrealistic for anyone I know who went to college, and those who didn't are in low pay jobs with no retirement plan
Re: Gen Z wants to retire early. They're off to a good start
#4> For Gen Zs, there seems to be a correlation between gambling and investing—particularly, high-risk investing. In the United States, 61% of surveyed Gen Z investors said they gamble online or in person, compared with 29% of non-investors surveyed. Their propensity for gambling is also associated with riskier investments; 70% of US Gen Z investors who gamble frequently invest in crypto, and 38% invest in non-fungible…
Translated: They did not experience a stock-market crash yet and the societal memory of risky behaviour resulting in a stock market crash fades.
Re: Gen Z wants to retire early. They're off to a good start
#5> Given that financial advisors say that Gen Z will need roughly $3 million for a 20-year retirement — a high bar even for smart money managers
If we assume a 2% inflation rate going forward, that's only ~$600,000 in today's dollars. Seems like a relatively low bar, no?
Re: Gen Z wants to retire early. They're off to a good start
#6> For Gen Zs, there seems to be a correlation between gambling and investing—particularly, high-risk investing. In the United States, 61% of surveyed Gen Z investors said they gamble online or in person, compared with 29% of non-investors surveyed. Their propensity for gambling is also associated with riskier investments; 70% of US Gen Z investors who gamble frequently invest in crypto, and 38% invest in non-fungible…
I was literally going to point this out but missed it in the article.
All of my "Gen Z" family and colleagues invest, certainly, but many "invest" in the same way a millennial invests when they visit Las Vegas.
Re: Gen Z wants to retire early. They're off to a good start
#7> Given that financial advisors say that Gen Z will need roughly $3 million for a 20-year retirement — a high bar even for smart money managers If we assume a 2% inflation rate going forward, that's only ~$600,000 in today's dollars. Seems like a relatively low bar, no?
I think that is 3 million now, not 3 million by the end of the retirement period.
Re: Gen Z wants to retire early. They're off to a good start
#81. Does all of this just rely on surveys instead of real data?
2. Investing for old age retirement is seen a necessity, since many people in my generation (Germany, 1989) don't believe they'll get pensions above what everyone gets as social safety net anyway.
3. Since nothing relies on actual numbers, it's hard to tell whether GenZ is just more savings-conscious, as compared to really saving more. A boomer that bought a house on credit in the 70s invested more than a comparable GenZ who invests in an ETF what little money they have left after paying rent.
4. With most GenZ working safe desk jobs - which goes easy on their health and is also easier to do in old age - I doubt they will have to retire as early (let alone even earlier!) as the generations before them.
Re: Gen Z wants to retire early. They're off to a good start
#9> Gen Z started saving for retirement at the median age of 19, earlier than any other generation ? Median? These numbers seem unrealistic for anyone I know who went to college, and those who didn't are in low pay jobs with no retirement plan
The study said four in five gen z investors. I wonder how many of those gen z investors maybe bought a little crypto along the way when it was a fad.
Re: Gen Z wants to retire early. They're off to a good start
#10> Given that financial advisors say that Gen Z will need roughly $3 million for a 20-year retirement — a high bar even for smart money managers If we assume a 2% inflation rate going forward, that's only ~$600,000 in today's dollars. Seems like a relatively low bar, no?
2% inflation rate is super optimistic. You have seen the levels of sovereign debts?