Younger workers—Generation Z and young Millennials (18-34 years old)—are growing more ambitious, with more than one in three (35%) reporting higher career goals than they had pre-pandemic.
A primary reason for this ambition? To make enough money so they can retire early, according to new research out this week from Qualtrics.
These young workers don’t plan on working until they can receive full benefits from Social Security. In fact, nearly a quarter (24%) of them plan to retire early, and 41% of those would-be early retirees want to do so by the time they turn 50. By comparison, 21% of workers between the ages of 35 and 54 plan to retire before they turn 67.
While younger workers are growing more ambitious, the study of 3,000 working Americans found that more than one-third (35%) of workers overall say their career ambitions decreased over the past three years.
Combined, Gen Z and Millennials make up more than 40% of the American population, and are a growing share of the labor force. At the same time, there were about 2 million more retirements than expected during the pandemic, concentrated among workers 65 years and older. Gen Z and Millennials place a higher priority on aligning with their employer’s values than older generations; this research highlights how the workforce culture is shifting with a new generation of workers.
“This data suggests that the levers organizations pull to attract and retain both younger and older workers may need to differ.”
Qualtrics’ Dr. Benjamin Granger
Younger workers are more likely to aspire to higher job titles than older workers. A larger share of young workers want to found their own business, be part of the C-suite, and lead a full department or multiple teams than the percentage of older employees who want to hold those same positions. Just 8% of young workers want to be individual contributors and not manage others.
“The pandemic pushed people to think differently about the role that work plays in their lives, and we’re seeing the impact of that,” said Qualtrics Chief Workplace Psychologist Dr. Benjamin Granger. “While it’s not surprising that growth and development are important and career ambitions change as we age or enter different stages of life, this data suggests that the levers organizations pull to attract and retain both younger and older workers may need to differ.”
This career ambition may be driven by a separate goal, to enjoy their life outside of work obligations. The largest motivating factor for young workers to do their best at work is earning money, whereas older workers are more motivated by personal pride in their work.
There are also limitations to how much extra work young workers are willing to take on to advance in their careers. Three-quarters of young workers say they are likely to accept a promotion with a 10% pay raise if they have to work up to five extra hours per week, but that drops to 37% who would take a similar promotion that required more than eight extra hours of work each week, while 40% of workers aged 55 and over would still take that promotion.
SEE ALSO:
• Most Young People Should Not Save for Retirement in Their 401(k): Part 2
• Millennials Shake Up Vision of Retirement
• How Do 4 Generations Compare in Retirement Preparation?
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
