61% of Boomers Feel Wealthy When They Are Financially Secure — How Gen Z Compares
Written by
Dawn Allcot
Edited by
Cory Dudak
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How you invest often depends on your definition of wealth and your goals for later in life. An eye-opening study from U.S. Bank of active investors and aspiring investors — spanning ages 18 to 59+ — revealed the definitions of “wealth” according to four major cohorts: Gen Z (age 18 to 26), millennials (ages 27 to 42), Gen X (ages 43 to 58), and baby boomers (ages 59 and up).
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According to the study, 61% of boomers defined “wealth” as having “financial security.” In second place — far behind at 33% — boomers ranked “having good health” as an indicator of wealth.
On the other hand, while financial security is important to Gen Z — with 36% rating it as an indicator of wealth — 38% said “a better quality of life” makes them feel wealthy.
These two things — financial security and a better quality of life — also topped the lists of investors across all age groups. In general, 52% of active investors said “financial security” makes them feel wealthy, while 32% said “a better quality of life” makes them feel wealthy. Respondents were allowed to choose up to three answers.
Motivations for Investing
Different generations have vastly different motivations behind investing. Roughly 80% of Gen Z and millennial investors both said they are highly motivated to invest to “pursue their interests / buy the things they really want.” On the other hand, only 54% of boomers cited purchases as their motivation for investing.
Likewise, 78% of Gen Z investors and 76% of millennial investors said they are highly motivated to invest to “open new opportunities / experiences.” Only 42% of boomer investors said the same.
Choosing Investments
When it comes to choosing investments, Gen Z was the most motivated out of all cohorts to invest to support a cause they care about, with 65% of Gen Z choosing this option compared to 59% of millennials, 45% of Gen X and just 30% of boomers. More than half of Gen Z (53%) and millennials (52%) said they will only invest in businesses that take a public stance on certain issues. Meanwhile, only 38% of Gen X and 28% of boomers said the same.
Younger generations aren’t just paying lip service to causes, either. More than 80% of Gen Z and millennial investors said they would accept a return below 11.9% — which is the average yield for the S&P 500 over the past 10 years — if the company aligns with their beliefs.
Understanding the differences in the mindsets of investors at different ages can help you see how you compare. However, it’s important not to let the opinions of others who may not understand your financial situation influence your investment strategies. Similarly, you may not want to trust the latest trends, even though TikTok investors might make investing look easy.
Rather, turn to expert financial advisors, whether you need help getting started investing or adjusting your investment strategy to match today’s economic landscape.
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