Gen Zs Lead the Pack
A new study finds Gen Zs’ participation in defined-contribution plans is three times the participation of Gen Xers at the same age.
According to a survey from the Investment Company Institute, there is a striking new trend in retirement savings: Gen Zs are leading the charge in early financial planning!
In fact, in Leo Almazora’s Febuary 7, 2024 article for investmentnews.com, he found that Gen Zs’ participation in defined-contribution retirement plans is three times the participation of Gen Xers at the same age. Now that’s impressive!
“As college graduation season is upon us, it’s a fact worth noting,” investor Ann Marie Sabath said. Sabath is the author of The Wannabe Investor: 40 Must-Know Facts Before Buying Your First Stock. She cites two reasons for this generation being so retirement-savings savvy:
1- They are the DIGITAL GENERATION and have learned that the sooner they put their money to work as passive income, the earlier they will be able to retire! There’s no selling their soul to the corporate devil with this generation. . .
2- Many of these Gen Zs are aware of the Secure 2.0 Act, passed in 2022, which helps those with student loans to save for retirement by allowing employers to make matching contributions to employees’ retirement plans, such as 401(k)s based on employees’ student loan payments.
In addition to saving by maxing out their retirement plans, the same above-mentioned study also found that these savvy individuals under 25 years of age are also INVESTING in the market.
The question, however, is “how are they” or “ARE they” mastering the essential principles of long-term investing that will take them into their retirement years without monetary stress?
Sabath wrote her 11th book with these Gen Zs in mind. The Wannabe Investor clearly shares the “40 Must-Know Facts Before Buying Your First Stock.”
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