‘GenNext’ Introduces New Approach to Financial and Retirement Savings

GenNext

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A new study by Edward Jones analyzes a cohort of 76 million Americans known as “GenNext,” and how this group is approaching their financial savings.

The group represents Americans emerging into adulthood, who are between the ages of 18 to 34 and are the next generation of workers, heads of households, consumers, and investors making lasting decisions that will determine their future, Edward Jones notes.

While 80% of this cohort see themselves as currently struggling or even “merely surviving” at this life stage, they show optimism about their future, the data finds.

“Our research offers a deeper understanding of GenNext, an age group defined by their shared experiences, not the year they were born,” said Lena Haas, head of Wealth Management Advice and Solutions at Edward Jones. “With most worried about rising costs and an inability to save, this will have vast implications for the wealth management industry. Our purpose calls us to identify how we might help this age group plan and reach their life goals — across health, family, purpose and finances.”

Financial approaches

GenNext employees were likelier to have limited experience in the workforce, Edward Jones finds, as 19% have experienced job layoffs. While they think positively about retirement, this cohort doesn’t expect to have the same financial stability as their parents or grandparents, and only 31% hold a retirement account.

This is likely because GenNext individuals believe in a “short-term mindset” when it comes to their finances, Edward Jones says. This cohort is likely to focus on everyday expenses, including budgeting and saving for large purchases over other financial matters.

The stopgap mindset extends to their working life as well, as GenNext individuals are likely to be highly mobile and move from one job to the next, with many working gig jobs or “side hustles” to fund their lifestyles.

“They want flexibility in where and when they work, and are open to nontraditional career paths,” Haas added. “Naturally, this group will have diverse financial needs impacting how they save, spend and invest. It was important for us to understand their needs and encouraging to see that they are open to advice where there may be gaps.”

According to Edward Jones, 13% of GenNext individuals have paid off college debt, 57% have health insurance, and 27% hold life insurance. Twelve percent go to a financial advisor to discuss finances, 20% receive financial guidance from social media or influencers, and 52% speak with their parents.

Even as 78% of GenNext do not currently work with a financial advisor, 41% say they plan to someday, and 68% see “financial advisors as a sounding board for ideas.” Another 66% say they prefer in-person interactions with their financial advisors.

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