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Younger generations are showing marked changes in their attitudes to work, life and savings compared to older generations, and are taking drastic steps to balance their lives, according to new research.
A Prudential Financial study found that millennials and Gen Z are attracted to more flexible work arrangements, but are more likely than Gen X and baby boomers to switch to gig work, take out debt, and move away from family finances. are much more likely to reach their financial goals with financial support. Latest Pulse Research survey, “The Growing Generation Gap: Job and Money Outlook Divided.”
It may be a matter of course, but the younger generation is the driving force behind the so-called “great resignation.” A third of millennials and 46% of Gen Z have changed employers since the pandemic began.
Younger generations are more likely to say that the best way to increase their income potential is to change employers every few years, with 41% of millennial workers and 44% of Gen Z workers While expressing this opinion, 36% of all workers do.
Conversely, research shows that job flexibility is an important factor.About 10 millennials (29%) who changed jobs in the past year said she salary cutmore than one in four millennials said they took a pay cut to improve work-life balance.
Younger generations are also looking to their employers for help. Nearly six of his 10 of Gen Z (58%) and millennial (57%) workers said they wanted their employers to feel more financially empowered. We believe that we have a responsibility to support
“Millennials are keenly aware of the benefits of a hybrid working model,” said Rob Falzon, Vice Chairman of Prudential. “The greatest opportunity for employers is to fully embrace this new era and redefine the workplace to best meet the needs of their employees, no matter where they are in life.”
competing priorities
Research shows that 70% of hybrid workers report a strong sense of loyalty to their employer, compared to 64% of in-person employees and 59% of remote workers. Hybrid workers say they feel fairly compensated for the work they do (68%) and that benefits offered by their employer are tailored to their individual needs (64%) Also more likely.
But many Americans report that their primary source of income isn’t enough to pay bills or save for the future, notes Prudential. Nearly half of the millennial (49%) and her Gen Z (48%) don’t believe they will be paid enough to meet their financial goals. So it’s become the norm to turn to gig work, borrow money, or get financial support from relatives to fill the gap.
Increased gig work: 70% of all workers have sought or considered gig work to supplement their income in the past year. This is even higher among her Gen Z (81%) and Millennials (77%), with about a quarter hoping their gig work will one day become a full-time job. However, most workers (34%) considering or pursuing gig work said they would only do so until their primary source of income could fully support their financial needs. increase.
Seeking Financial Assistance from Others: Half of millennials say they regularly run out of money and have to rely on credit cards or family members for financial support, and 65% of millennials and Gen Zs have lost a parent in the past two years. , receive financial support from a significant other, relative, or grandparent. .
No Emergency Savings Fund: 50% of all respondents have less than $500 or no emergency savings fund. Nearly four in 10 (39%) of her millennials and Gen Zers report no emergency savings at all.
Debt burdens: 55% of millennials say debt is preventing them from achieving personal goals like owning a home or having children. 33% of millennials and 32% of Gen Z say student loan debt is a barrier to achieving their personal goals.
Not keeping budgets or prioritizing investments: Nearly 70% of millennials and Gen Z don’t have a formal budget. 44% of Gen Z and 38% of millennials have not invested.
“If you don’t pay attention to your finances, you can easily lose good spending and saving habits. As a millennial myself, I know how difficult it can be to balance financial responsibility and social life. ,” explains Brandon Goldstein, financial planner at Prudential Financial. “That’s why it’s imperative to assess and prioritize what’s important so you stay within budget and don’t lose sight of your long-term financial goals.”
The survey was conducted by Morning Consult on behalf of Prudential from September 29 to October 1, 2022 and included a national sample of 4,796 self-identifying adults.
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