In many ways, Gen Z (1997-2013) is the most cryptic generation because they’re the youngest in the workforce, and the least tested. However, they're already developing a bit of a reputation - when surveyed, the other generations agree that Gen Z is the hardest generation to work with. Gen Z also faces the most uncertain financial future, as they’re the farthest from retirement. With cost of living on the rise, they face an uphill battle as some experts estimate they could need as much as $3 million in order to retire comfortably.

In this blog, we'll clear the fog around this generation and give you the facts on how to engage with them in a way that will resonate. How do they make financial decisions? Where do they go for information? And how do you help connect them with a clear vision for their retirement?

Savings? What Savings? ‍

Many in this generation emphasize “soft-saving” over retirement savings. They’ll save to take a big trip or vacation but aren’t focused on long-term returns. In fact, 73% of Gen Zers surveyed said they would rather have a better quality of life now than invest in a tenuous future. Over half of Gen Z admits that they don't have enough emergency savings to cover 3 months of expenses.

‍They Love Tech ‍

This generation has a strong preference for technology-based learning. They have shorter attention spans (roughly 8 seconds) and will need shorter materials. Short videos and infographics with a quick bottom line are a great way to connect with this audience.‍

‍Key Concerns ‍

More than a third of this generation is very anxious about their finances. They worry about inflation and the long-term impact on their financial future.

They may need some level of convincing that saving for retirement is worthwhile. It may be useful to focus on the case for early retirement saving, especially compounding interest and the value of the match. They also have student loans and will need support navigating this financial burden. Remember, this group is young, and most are in their first jobs out of college. They may need help with basic budgeting, and offering them a quick resource that shows how to balance “right now” expenses (vacation, eating out) and “long-term” savings (retirement, housing fund) will capture their interest.

‍Messaging Best Practices

Email could be a good option for reaching Gen Z, since they are newer to the workforce and on average receive fewer emails per day and open at a higher frequency than their millennial counterparts. To reach this generation simplicity is key. Make it easy - give them bite-sized answers with no fluff. Be clear about who you are and why you’re communicating with them, as Gen Z-ers tend to be skeptical.

This generational is also fearful about the future - use messaging that speaks to their fears and provides an alternative. One particularly strong fear in this group is the fear of missing out (FOMO). Over 40% of Gen Z will admit to an investment strategy motivated purely by FOMO. This generation cares a lot about what their peers are doing. Use statistics or stories about how your product or service has impacted others in their generation. 

‍Want to read more about generational differences? Click here to read our full article.