According to Charles Schwab.
And that makes them want more financial advice than older plan members, according to the results of the Schwab 2021 401 (k) Plan Member Survey.
âGeneration Z workers are just starting their careers in a time of upheaval at home and in the workplace – from new health and safety challenges to the rapid expansion of virtual offices and dramatic fluctuations in our economy and our markets â Catherine golladay, director of Schwab Workplace Financial Services, said in a statement.
Almost two-thirds, or 62%, of Gen Z survey respondents want professional financial advice.
More of Gen Z respondents, or 60%, are “very likely” to take financial advice from a human being compared to 54% of other generations. A larger number of Gen Z respondents, one-third, are also “very likely” to follow computer-generated advice compared to a quarter of other generations.
One in three Gen Z respondents want help managing their living expenses so they can save more money for retirement, compared to 22% of all others.
About 29% of Gen Z respondents want help managing their debt, compared to 15% of all others.
Gen Z respondents are also interested in their overall financial well-being, and about half welcome online assessment tools that can give them a holistic financial picture and plan of action, according to Schwab.
The results are based on 1,000 interviews, which were not broken down by age, and 100 other Gen Z plan participants conducted in April by Logica Research for Schwab pension scheme services. The survey categorized the age groups as follows: Generation Z is aged 21 to 24; millennials are 25 to 40 years old; Generation X is 41 to 56 years old and baby boomers are 57 to 70 years old.
Financial stress is causing Gen Z respondents to worry about their 401 (k) plans and look for options beyond those accounts. One-third said they were “not on top” in their 401 (k), compared to 23% of other generations. A little more than half say they do not know which investments to choose for their retirement, compared to a third of the other generations.
Gen Z and Millennials want more options for their retirement plans.
About 45% of Gen Z and 52% of Gen Y respondents want an annuity that offers guaranteed income as an option in their retirement plan, compared to 39% of Gen X and a quarter of Baby Boomers.
About 41% of Gen Z and 43% of Gen Y want socially responsible options in their retirement plans, compared to 29% of Gen X and 12% of Baby Boomers.