Gen Z will notice and reward innovation and authenticity. (Delmaine Donson/peopleimages.com/Adobe Stock)
Concerns about high interest rates persist, with tariffs and stock market volatility creating new challenges—and opportunities— for investors. But as investor optimism dips, Gen Z remains unfazed by the latest market swings, according to digital financial advisor Betterment’s 3rd annual Retail Investor Survey.
Gen Z is engaging with their finances at a younger age than millennials, according to the survey. At age 25, Gen Z investors have roughly twice the assets on Betterment accounts than older millennials at the same age (and roughly 25% higher than younger millennials).
"It's encouraging to see investors – particularly Gen Zers – thinking long-term about their finances while leveraging both technology and human expertise to make informed decisions," said Sarah Levy, CEO of Betterment. "On our platform, Gen Z customers hold nearly twice the assets that millennials did at the same age, reflecting their improved access to financial education and tools that will set them up for long-term financial health."
Betterment's Retail Investor Survey surveyed 1,200 investors across four generations (Gen Z, millennials, Gen X, and baby boomers), revealing that despite broader economic uncertainty, investors are taking more control of their financial planning and are seeking financial guidance. Investors using investment apps and AI, who tend to skew younger, are showing particular resilience, reporting superior portfolio performance and confidence in their retirement strategies. Key findings include:
Market anxiety is real, but time horizon matters: While overall optimism has declined to 48% (from 60% last year) amid concerns about inflation (58%), political uncertainty (41%) and recession risks (41%), younger investors are proving more resilient. Gen Z (67%) and millennials (53%) are significantly more confident than older generations, suggesting that having a longer time-horizon and more tools at their disposal provides a buffer against short-term market uncertainty.
The right tools make all the difference: Investors who embrace digital investing platforms are seeing benefits beyond convenience – they're 23 percentage points more confident in their retirement strategies and 20 percentage points more likely to report recent portfolio gains. Perhaps most importantly, they're taking a more active approach to tax-efficient investing (66% vs. 32% of non-users), suggesting that accessible technology is empowering.
Technology and human expertise work best together: Rather than replacing financial advisors, digital tools are complementing professional guidance. Investors using digital platforms are nearly twice as likely to also work with a financial advisor (62% vs. 34% of non-users), indicating that investors today are seeking both the accessibility of technology and the personalized insight and assurance that human expertise can provide.
Related: Financial uncertainty hitting Gen Z and millennials harder than others, study finds
Use - and distrust - of AI is on the rise as tools diversify: More than half (53%) of investors use generative AI at least once a month for financial research. However trust in AI remains low, and only 30% would rely on AI for financial advice, suggesting that while investors are more comfortable using Large Language Models, they are not ready to turn the keys over to them (yet). Use of social media as a financial news source has continued to grow, with 36% of investors citing it as their top financial news source – up from 31% in 2024.
Though attitudes vary by generation, most investors are choosing to keep their investments steady, with some notable shifts into alternative assets and cash holdings, according to Betterment. Young, tech-savvy investors are more optimistic about their financial outlook and more likely to seek out external guidance from both human and digital sources. Older investors rely more on traditional financial advisors and have an understandably lower appetite for risk as they approach retirement.
Technology has made accessing financial advice and education easier than ever, giving investors greater confidence, even in shaky markets. Investors are more cautious and actively seeking support and advice from trusted sources—human or otherwise—to guide their strategies.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.