Minimum effort, maximum reward is the name of the game for many young workers, who openly disclose disdain for the corporate grind. “Lazy girl jobs” can pay the bills while maximizing work-life balance, per Gen Z; so can “quit quitting,” or at minimum, “grumpy staying.”
But this workplace cynicism shouldn’t be written off as a total disconnect from financial reality; at least, that’s what a new report from Bank of America indicates.
To compile the “Q2 2023 Participant Pulse Report,” the bank monitored plan participants’ behavior in their recordkeeping clients’ employee benefits program; more than 4 million participants with positive account balances were tracked.
The bank found that the average 401(K) balance has increased by $7,250 since 2022. More workers increased their contribution rate than decreased it this quarter, with Gen Z leading by a landslide. More than 19 percent of Gen Zers increased their contribution rate, compared to 11 percent of millennials, 9.7 percent of Gen Xers and 7.8 percent of baby boomers.
Amongst Gen Z and millennials, less than 3 percent lowered their contribution rates. Young people prioritize saving because many doubt they’ll be able to retire, Fortune reports.
“The onset of the COVID-19 pandemic rocked the economy as Gen Z entered young adulthood,” Charlie Pastor, a financial planner, told the publication. “Older generations should understand that the next generation of savers has seen a lot of economic turbulence in a short period of time.”
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