A recent study conducted by Qualtrics on behalf of Intuit CreditKarma has shed light on an important aspect of the financially independent, retire early (FIRE) movement that include Gen Z members. While more than half of Gen Z surveyed (53%) identify themselves as part of the FIRE movement, and harbor dreams of an early retirement, the truth is that 32% of FIRE-believing Gen Zers have absolutely no money saved for retirement.
Fusion IQ chief investment officer John Guthery, CFA, pinpoints the lack of financial education, limited resources and inadequate access to savings strategies as key factors contributing to this startling trend. Institutions, however, including banks and credit unions can play a pivotal role in empowering us to take the right steps forward.
“These institutions can offer solutions when they provide easy, low-cost access to professionally managed digital advice that provides options for younger investors, including a self-directed trading option,” Guthery told InvestmentNews’ Gregg Greenberg. “While there are some exceptions, meeting younger investors and savers where they are can provide a meaningful start toward retirement savings for almost anyone.”