Gen-Z adults 'better prepared' than Millennials with money saving plans

Recent research suggests Gen-Z adults are more prepared for the future than Millennials when it comes to their money goals. According to a survey, 59 per cent, almost six in ten after-1996-born savers who form Gen-Z, have committed to financial plans looking forward five years, per First Direct's observations.

In stark contrast stand the Millennials—those born between 1981 and 1996—of which just four in ten, or 40%, reported similar foresight. Commissioned by First Direct as part of its 35th anniversary celebrations, this OnePoll survey in October queried 4,000 individuals.

Despite economic headwinds like delayed milestones in homeownership or desired salary levels, an inspiring three-quarters from both Millennial (76%) and Gen-Z (73%) age groups remain steadfast in pursuing their financial ambitions. Notably, 50% of Millennials acknowledge the cost of living crisis as a barrier pushing back their targets, alongside factors like economic unpredictability cited by 28%, and stalled wage increases referenced by 27%.

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For Millennials, the top aspirations include striking a healthier work-life equilibrium (34%), gathering funds for retirement (29%), wandering to unexplored destinations (29%), reaching financial self-reliance (29%), climbing the salary ladder (29%), and propelling their career trajectory (29%).

Carl Watchorn, head honcho of banking services at First Direct, stated: "What our data shows is that younger people have very high aspirations when it comes to achieving their financial goals." He commented: "Having navigated a range of challenges, including higher costs of living and the aftermath of the pandemic, they are also an incredibly resilient generation that’s committed to building a good standard of living."

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