Generation Z may become "the true modernizer of the retirement industry," according to a recent survey from Principal.
In the fall of 2022, the insurance company conducted its "Future of Retirement" survey. Principal asked 233 plan sponsors and 201 financial professionals how they expect the retirement industry to evolve by 2020.
Generation Z is likely to revolutionize insurance, according to the survey respondents. They are expected to prefer a digital process, using online tools to help them save and navigate their applications. Plus, Gen Zers are prone to trusting big-name tech companies like Apple, Google and Amazon over financial companies when looking for advice.
The youngest generation to enter the workforce will also prefer a personable experience, survey respondents predict. They expect benefit providers to "know them or their needs," according to Principal's report, and will want nontraditional benefits to support a diverse workforce. More socially conscious than their predecessors, Gen Zers may catalyze growing environmental, social and governance investments within the next decade.
Gen Zers, like their parents and grandparents, have no expectations of receiving Social Security, the survey respondents said. They understand that saving for retirement is their own responsibility.