Education is vital to ease Gen Z employee's anxieties about retirement planning

For Gen Z employees, the challenges they face in an uncertain world are unique when compared to previous generations. For those in the Gen Z group – and working people of all ages – expectations, challenges and concerns naturally evolve as they pursue career and personal goals. That’s why companies such as Zurich are investing more in educational tools and technology as one way to help current and future generations face the future with confidence.

From the rising cost of living and retiring, through to concerns about the future impact of AI on their employment prospects, it’s not surprising there’s a high level of financial anxiety among the Gen Z age group. 

But this isn’t only a worry for those in the Gen Z age group because it’s estimated 70% of people of all ages feel anxious about their finances. To help ease these anxieties, Zurich provides a range of financial education tools to suit everyone, no matter their age, level of knowledge or where they are on their career journey. From new starters to those nearing retirement, the tools are designed to provide useful information and guidance for all. 

However, addressing the concerns of Gen Z employees is particularly important because this age group will have growing significance in the decade ahead as they become the leaders of the future. By 2025 it’s estimated that Gen Z (i.e. those born between 1995 and 2005) will account for approximately 27% of the global workforce, rising to around 31% in 2035. Right now, many in this age group fear what the decades ahead may hold for them. When it comes to career and personal finances, a common concern is how they can save now when the cost of living is so high, and what they can do to future-proof their retirement plans. 

Stephanie Hatton, Corporate Benefits Executive at Zurich on the Isle of Man, says this is why financial education is essential: “While professionals across all age groups are already highly educated and tech-savvy,” she says, “many still have some degree of financial anxiety, so there’s still a need to offer more support to cut through the complexity about financial and retirement planning.”

One example of how Zurich is addressing this challenge is the introduction of Nudge to the ZIO (Zurich International Online) app, which acts like a financial ‘coach’ by helping users to take informed action to plan their future. By setting up a profile, employees get personalised guidance, timely prompts and tailored learning to help them on their financial wellbeing journey. This financial education solution combines data and analytics with content and behavioral psychology to help people better understand and manage their money. The ZIO app is one of an expanding range of services offered as part of Zurich’s Group Personal Pension Plan and SIPP (Self-Invested Personal Pensions).

Nudge gives access to articles covering 29 areas of personal finance, ranging from budgeting and saving to retirement and pensions, plus…

• Financial education to help users identify, plan, and achieve their goals
• Unbiased insights specific to their financial world, with 30+ interests to choose from
• Bite-sized, jargon free, knowledge, tips, and tricks to help users make the best decisions, saving time, effort, and money
• Personalised nudges in the right direction whenever needed, via the users’ preferred method of communication

Nudge also complements an award-winning financial education tool, ZOGO, that’s already on the app. Stephanie added: “ZOGO is a brilliant tool which makes it easier to understand and manage personal finances. As it is gamified, it makes it feel like a fun thing to do rather than a chore, which of course helps to encourage regular, long-term, engagement.”

ZOGO gives access to a range of topics geared towards improving financial knowledge and skills, such as saving and spending or investing and retirement. The content is delivered in an engaging and digestible way which is tailored for a global and diverse audience. Content is being reviewed and added to all the time. Right now, it includes 800+ modules. This is one of many reasons why it is trusted by more than 250 financial institutions and has more than 1.6million users worldwide. Data from the platform shows that 95% of users feel that it boosts their financial confidence.

Summing up, Stephanie says: “For all forward-thinking employers it’s essential to understand how financial education, as part of a comprehensive employee benefits package, will help to recruit and retain the best people over the next decade and beyond.”