Generation Z is not worried about saving for retirement like the generations before them, according to studies from TD Ameritrade and PNC. Despite living through the worst economic crisis since the Great Depression, most of today’s teens feel confident that their parents will leave them an inheritance that will support them in retirement.
Generation Z Expects an Inheritance
The young Americans who grew up during the Great Recession, also known as Generation Z, have apparently been unaffected by the financial hardships their parents have suffered over the past few years.
According to the TD Ameritrade study, nearly 40 percent of teens and young adults, ages 13 to 22, expect to receive an inheritance from their parents. As a result, saving for retirement is something they don’t believe they need to do.
Unfortunately, the odds of many in this young generation inheriting wealth are likely to be very slim. In fact, according to the study, only 16 percent of parents expect to provide an inheritance.
Saving for Retirement a Primary Goal for Parents
Most individuals in Generation Z don’t know that finances are a big concern for their parents. A separate survey conducted by PNC revealed that many parents are struggling to save for their own retirement, which takes passing on an inheritance off the table.
Among adults who have at least $100,000 in investable assets, 58 percent say leaving an inheritance is not their primary concern, according to the PNC survey. In fact, only 2 percent said passing on money to their children is a primary financial goal.
This means it will be up to parents to educate their children about financial responsibility as soon as possible to help them invest and grow their money. This way, Generation Z will have the tools necessary to make saving for retirement easier.