Achi news desk-
According to a study conducted by a financial group, Wealthsimple, millennials and Gen Z prioritize experiences and a better work-life balance over traditional ideas of success such as home ownership and retirement savings.
“They don’t look at it in a linear way where you work and completely retire at 65. They try to find balance through the enjoyment of their life,” says Jennah Cornelissen, lead advisor at Wealthsimple.
The study found that 78 percent of millennials and Gen Z feel the concept of retirement needs to be modernized to better meet today’s reality. Instead of saving for home ownership, 57 per cent prioritize savings for travel.
Recent postgraduates Braydon Killen and Ian MacDonald said the cost of living is part of the reason they are not saving for retirement.
“With the house prices going up, I’ve been looking around and it’s crazy how much they’ve gone up, so it’s kind of hard to put my mind to that right now while I’m young, ” said MacDonald.
Killen believes the pandemic has also been attributed to the change in mindset of saving for the future.
“Because of the pandemic we were stuck for a long time so it kind of makes you want to live life again and get back out there.”
The study shows that although most are not saving for a house or retirement, 53 per cent hope to stop working before they turn 55.
Cornelissen said many are considering other ways to get there.
“They’re turning to their portfolios and investing as a way of bridging that gap. They’re really looking to use that to fill the gap when they eventually stop working and no longer have employment income.”
According to the study, 47 percent of Gen Z and Millennials see investing as a way to achieve their ambition.
“Instead of prioritizing work over so many years and then you retire, they’re really looking at prioritizing other things and having a better balance throughout their life, so really trying to find that financial freedom to doing the things they can enjoy,” says Cornelissen.
He said although it is difficult, it is not an impossible goal to achieve.
“Seeking the right financial advice which is also personalized for you is important. Prioritization becomes important because not all of us can do everything at the same time so sitting down and asking yourself what your key goals are and what is most important to you makes the saving goals and the use of the portfolio a little easier.”
