Gen Z’s Early Focus on Retirement and Financial Stability
The youngest members of the workforce, Generation Z, are already prioritizing retirement savings and voicing concerns about their future income. Many are exploring innovative ways to build financial security, including turning to cryptocurrencies as a potential source of income.
Even with inflation easing slightly, the rising costs of goods and services globally continue to challenge individuals, particularly Gen Z, who are increasingly concerned about financial stability. A recent report from the BlackRock Read on Retirement survey revealed that 69% of Gen Z respondents are worried about “outliving their retirement savings.”
AbdulMalik Ifthikar, a finance student at the University of Wollongong, shared his perspective, stating, “Inflation is a global concern, and even in Dubai, it has been steadily increasing over the last seven to eight years. Many Gen Z individuals feel that earning money in a competitive environment like Dubai has become harder. They fear that by the time they retire, rising inflation and challenges in generating income may leave them with inadequate savings.”
He emphasized the importance of prudent financial management, adding, “Personally, I keep a close eye on my expenses. A lot of what we spend on today is unnecessary, whether it’s impulsive purchases or frequent outings.” For the 20-year-old, mindful spending and avoiding impulsive financial decisions are essential.
The Rise of Side Hustles and Investments
Many Gen Z individuals are supplementing their income with side hustles to strengthen their financial stability. AbdulMalik himself has launched a media production company as an additional source of revenue. He has also allocated a portion of his savings to Index funds and ETFs, focusing on investments such as the S&P 500.
“Rather than leaving money idle in a bank account, I believe it’s better to invest in options like Index funds, which can potentially grow by 5-7% annually,” said the Sri Lankan expat. He noted how newer generations have embraced financial tools that were less common in the past.
“When I compare myself with older generations, like my father, I notice differences in our financial approaches. While my father focused on earning and ensuring family stability, my generation has access to more resources and begins addressing financial planning much earlier.”
Gen Z’s Adaptability in a Changing World
Qais Abuiktish, an Industrial Engineering student at the American University of Sharjah (AUS), echoed similar concerns. The 19-year-old Palestinian expat highlighted the difficulties of saving for the future amidst inflation and a competitive job market. He added, “Today’s job opportunities are scarcer, and having a degree alone no longer guarantees success. The rising cost of living has also pushed our generation to explore diverse investment options, including cryptocurrencies, gold, stocks, and real estate.”
Qais believes that Gen Z has a unique advantage over previous generations due to their access to vast online resources. “We can learn from past mistakes and leverage tools like social media to gain financial literacy and make informed decisions. Many in our generation think about retirement much earlier, recognizing the importance of planning.”
Changing Perspectives on Savings and AI’s Impact
Tejasvi Sandeep Gurjar, a 22-year-old Fashion Marketer, also noted the challenges her generation faces with savings and retirement planning. “The rising costs of commodities and rent are major concerns. To tackle this, many of my peers, including myself, are investing in cryptocurrencies. Long-term investments in these platforms can offer financial benefits.”
Tejasvi also reflected on the impact of AI on career planning. “Many young people worry about AI replacing traditional roles, which adds to the uncertainty. Cryptocurrencies and other modern investments are seen as backups in case of job instability,” she said.
Comparing generational attitudes, Tejasvi observed, “Our parents’ generation believed in saving and cutting expenses, often adopting a middle-class mindset. However, our generation focuses more on investing and finding multiple income streams, such as freelance work or side jobs.”
The Shift in Financial Mindsets
Overall, Gen Z is navigating a rapidly evolving financial landscape, embracing new opportunities and strategies to secure their futures. From innovative investments to side hustles and proactive financial planning, they are rethinking traditional approaches to money management, with an eye on long-term stability and growth.
