Gen Z Has A Plan And Most Baby Boomers Are Almost There

Blown out candles on a cake or uncoordinated singing marks a full trip round the sun. While some like to believe that age is just a number, the birthday banner remind some that they are one step closer to retirement.

Retirement plans for some people mean beautiful beaches or luxurious getaways. While it remains a anxiety-inducing thought for some others.

HSBC Quality of Life Report 2024 covers affluent individuals across different generations, and includes insights from people across the ages of 25 to 69. Here are some interesting finds:

The majority of the Baby Boomers—people who are between 60 and 69 years old—have stuck to their retirement plans, according to the study. Only three out of 10 Baby Boomers say that they are off track in meeting their retirement goals.

This age group also has a greater awareness of how much money they need to retire. The study shows that nearly eight out of 10 in this age group understand how much they need to save for retirement.

Retirement has emerged as the second most popular financial goal among all generations. Among Baby Boomers, 72% say they are on track to meet their financial goals.

It is safe to say that the journey around the sun may not faze this generation anymore, as they are one step closer to what they have been working towards.

Birthdays could also just mean confetti, house parties, and some extra splurges, without worrying about retirement for some others.

Among Gen Z—aged between 25 and 27 in this study—very few individuals have an idea as to how much they should be saving for retirement yet.

While 77% of Gen Z may not be sure how much they need to retire, the study reports that not all of them are blissfully unaware about what needs to be done.

The study shows that only 29% of young people do not have a financial plan for retirement in place. This hints that a majority of Gen Z actually has a plan in place, while more than 50% of them accept that they are not on track with their retirement plan.

Maybe having a plan in place is a good enough start for Gen Z, while they are busy living it up for now.

Fear is often what pushes the idea of retirement plans beyond just a passing thought. Health is the major fear that pushes people to save for retirement.

About 39% of affluent individuals fear a decline in their health, and 68% fear that the rising cost of living will eat into their savings.

The study shows that 49% fear that they would not be able to save enough for a comfortable retirement.

With "reaching a certain age in life" being the main reason why people start thinking about creating a will, only 2% of people have their legacy planned.

Out of the 37% of people who have created a will, about 45% of them are Baby Boomers. The majority of this age group intends to transfer businesses to the next generation through their wills.

The study also notes that Gen Z is more likely to factor in charitable giving into their legacy planning than any other generation.