Main Topic: Gen Z voters' perception of politicians
Key Points:
1. Gen Z voters believe that politicians are not representative of a new generation.
2. July inflation report shows consumer prices reaching 3.2%.
3. Inside Britain's only all-wheelchair dance troupe.
Main Topic: Gen Z voters' perception of politicians not being representative of a new generation.
Key Points:
1. Gen Z voters believe politicians do not accurately represent their generation.
2. There is a disconnect between politicians and the concerns of Gen Z voters.
3. Gen Z voters are seeking political representation that aligns with their values and priorities.
Summary
Gen Z and millennials need between $3 million and $5 million in retirement savings due to inflation.
Facts
- Gen Z and millennials need $3 million to $5 million for a comfortable retirement due to inflation.
- More than 7 in 10 investors believe that $3 million to $5 million is the ideal retirement savings target.
- The rise in inflation has led to a three- to five-fold increase in the recommended retirement savings target.
- Managing towards an unknown future, including uncertain prices and lifespan, adds to retirement anxiety.
- Bloomberg customers, who have high incomes and careers in finance, were surveyed for the study.
- The US government debt will increase by $5.2 billion per day, adding to the need for increased savings for retirement.
### Summary
Buying a home has become increasingly difficult for Millennials in Australia due to rising property prices and the need for larger deposits, leading to many feeling locked out of the housing market.
### Facts
- In 1984, the average income was $19,188 and the average cost of a property in Australia was $64,039.
- Today, the average income is $90,896 and the average home costs $920,100.
- Buyers now have to borrow 10 times their income, compared to 3.3 times in 1984.
- Many first homebuyers are finding it hard to afford the 20% deposit required.
- Millennials face a challenge of wealth rather than income, as they struggle to access the wealth needed for the deposit.
- University of Sydney economist Gareth Bryant says more Millennials are becoming lifelong renters.
- Parental support plays a significant role in helping Millennials enter the property market.
- Some Millennials, like Josh Franzin, have managed to buy a home through saving, hard work, and sacrificing short-term happiness.
Gen Z and millennials need to save between $3 million and $5 million due to inflation, which has led to a three- to five-fold increase in the recommended retirement savings target, according to a Bloomberg study.
Canadian millennials, especially homeowners, are expected to face significant economic damage and high interest costs in the coming months due to rising interest rates, according to a report by RBC, leaving them vulnerable to job losses and straining their high levels of debt.
Almost half of Generation Z adults and 39 percent of millennials do not expect to receive any Social Security benefits they have earned, according to a survey by the Nationwide Retirement Institute, with concerns growing over the program's insolvency within the next decade.
Individuals between the ages of 40 and 59, known as Gen X and younger baby boomers, experience the most stress and struggle with managing the concept of longevity, making it crucial for them to start planning for their future and seek guidance from financial advisors, according to research from Transamerica and the Massachusetts Institute of Technology AgeLab.
Canadian Millennials are struggling financially compared to previous generations, with higher levels of debt, stagnant incomes, and less disposable income, which could amplify the impact of an economic downturn, while Boomers are faring much better.
Gen Z is actively participating in the stock market, with 90% of them trading and responding to economic factors, and they are using diverse financial resources to learn and invest confidently, although caution should be exercised as day trading is not an effective way to build long-term wealth.
Some Gen Z managers are frustrated with their young workers, citing issues such as a lack of motivation, failure to adhere to company procedures, and a preference for personalized career development; however, experts suggest that understanding and addressing their needs and motivations could inspire Gen Z employees to excel in the workplace.
Mortgage rates above 7% are worsening the affordability crisis, limiting younger buyers' ability to purchase homes and causing millennials to lag behind previous generations in homeownership, as rising rates and prices erode buying power.
The US experienced a significant decline in wealth last year, but millennials saw their net worth rise due to their higher investment in real estate, debunking the myth that they are financially struggling.
The average price of cars in America has risen recently, causing financial strain for Gen Z and millennials, especially due to rising interest rates and high levels of auto loan delinquency.
Generative AI is most popular among Gen Z and millennials, with the majority of users stating that it is transforming their lives and they are quickly learning to use it; however, there is a clear divide between generations and employment status, with slower adoption among Gen X and baby boomers, and concerns about the impact on their lives and data security being the main reasons for hesitation.
The aging population, particularly the baby boomer generation, is fueling the demand for housing, creating a shortage and making it more difficult for younger generations, like millennials, to buy homes.
Millennials and Gen Zers are turning to side hustles and creative strategies, such as wedding gift registries, to save for down payments on homes amidst rising mortgage rates and high home prices, according to a Redfin study. However, many in these generations still face challenges in envisioning homeownership due to the perception of expensive homes and the inability to save for a down payment.
The resumption of student loan payments in October will add to the financial burden of Gen Z and millennial Americans looking to buy a home, further squeezing their ability to afford housing.
Gen Z young adults are both thrifty and willing to splurge, saving money on certain items while splurging on luxury goods, reflecting their personal values and priorities such as sustainability and pet care.
Millennials and Gen Zers are concerned about the financial impact of baby boomers, as they believe the older generations' choices have contributed to their current financial struggles, including high student debt and difficulty affording housing, while boomers hold a majority of the nation's wealth.
High home prices and interest rates have created challenges for young Americans, but the boomer generation has benefited from high home prices and bond yields, making them less affected by the economic cons.
A recent report suggests that many Gen Xers in the US are not saving enough for retirement, with only 14% having a defined benefit pension plan and the median retirement savings for Gen X households being just $40,000. Additionally, there are stark racial and ethnic differences in savings accumulation, with Black and Hispanic workers having the lowest savings.
Many young adults, including members of Generation Z, are struggling to maintain good credit scores and are dedicating a significant portion of their disposable income to servicing their debts, which could hinder their ability to build wealth and save for retirement.
Young professionals, particularly Gen Z and millennials, are seeking more flexibility and work-life balance, which can often clash with the expectations of older generations; however, there is a common thread among all generations in valuing their personal lives outside of work.
Gen Z entrepreneurs often struggle with invoicing, with 93% seeking help from their parents and 53% unsure of what to include, which can lead to financial setbacks and damage to their professional reputation, according to a survey by Skynova.
Millennials who purchased homes and settled in the suburbs during the pandemic will face a financial burden as they will not be eligible for student loan relief, potentially leading to an increase in household bankruptcies, according to former Fed economist Danielle DiMartino Booth.
Millennials are being heavily impacted by higher interest rates, while baby boomers are benefitting from the increased rates by earning 5% on their savings, resulting in a significant wealth disparity between the two generations.
Older millennials, specifically those aged 35 to 44, are the least likely to feel financially secure, with 80% reporting high levels of financial stress due to factors like inflation, challenging economic circumstances, student debt, childcare bills, and soaring housing prices.
Millennials are being hit harder by elevated mortgage rates than other generations, as they were not able to take advantage of historically low borrowing rates during the pandemic, leading to increased mortgage debt and difficulty in entering the housing market.
