Gen-Z employees in the UK are struggling most when it comes to saving money each month, compared to older age groups. This is according to new data*, which provides employees with a score across five core pillars of financial health: borrowing, learning, planning, spending, and saving.
Having analysed data from over 15,000 UK employees nudge has revealed that Gen Z workers (aged 18-23) on average received a saving score of just 49/100 and a planning score of 38/100. With 100 representing the highest score possible, this highlights the generation’s attitude towards financial planning and challenges with saving.
The data also shows that older generations, on average, are performing better when it comes to savings. Workers aged 24 and over achieved a savings score of 56.5/100, which is 15% higher than Gen Z.
As employees mature, their attitude to savings also appears to improve. Those aged 53-60 scored 65/100 for savings, and those aged 61+ scored was 66/100 – representing a 33% and 35% increase, respectively.
Commenting on the findings, Tim Perkins, nudge Co-founder and CEO said: “As a generation, Gen Z face various, new financial challenges their parents did not. House prices have soared exponentially, and the cost-of-living crisis combined with other economic volatility has made it more difficult for them to purchase assets. So as a rental generation, they live in a ‘buy now, pay later’ world where saving money is viewed as a barrier from prioritising their mental health and overall wellbeing. As a result, our data may point to a wider trend of younger employees prioritising short-term enjoyment over long term stability.”
According to a recent national survey conducted by Money.co.uk savings, Gen Zs found themselves dipping into savings four times more often this year than the 2022 average.
Tim Perkins, nudge Co-founder and CEO adds: “Gen Zs approach to saving appears to be unique to older age groups. Rather than creating that long-term financial safety net, we’re seeing more and more opt for what’s been duffed ‘soft saving’, where more money is spent in the present for a better quality of life and less is earmarked for the future’. However, young employees should not feel compelled to choose one priority at the expense of another.”
“As we now enter 2024, we know Gen-Z need more support with their financial education – specifically when it comes to saving. And with a strong link between financial wellbeing and factors such as happiness and productivity, building effective, un-biased financial education into your benefits strategy in 2024 for everyone will be key to maintaining an engaged and motivated workforce”.
*Research from nudge
